Arena Pharmaceuticals Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Arena Pharmaceuticals (Nasdaq: ARNA) announced on April 15, 2021, the grant of inducement stock options and restricted stock units (RSUs) to 17 new employees. The total includes 50,785 stock options and 20,490 RSUs, with a grant date and vesting commencement on April 15, 2021. The stock options have a seven-year term with an exercise price of $67.99 per share and vesting over four years. The RSUs also vest over four years, with a similar structure. These grants comply with Nasdaq Listing Rule 5635(c)(4).

Positive

• Inducement stock options and RSUs granted to new employees may enhance talent acquisition.
• Stock options have a favorable exercise price of $67.99, aligning with market conditions.
• Vesting periods encourage employee retention and alignment with company performance.

Negative

• None.

Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that on April 15, 2021, the Compensation Committee of its Board of Directors granted to 17 new employees inducement stock options to purchase an aggregate of 50,785 shares of its common stock and 20,490 inducement restricted stock units ("RSUs"). The inducement stock options and RSUs have a grant date and vesting commencement date of April 15, 2021 and were granted as inducements material to the new employees entering employment with Arena in accordance with Nasdaq Listing Rule 5635(c)(4).

The inducement stock options are non-qualified stock options, have a seven-year term, have an exercise price of $67.99 per share, the closing price of Arena's common stock on the last trading day preceding the grant date, and vest over four years, with 25% of the shares vesting on the one-year anniversary of the vesting commencement date and the remaining 75% of the shares vesting in substantially equal monthly installments over the following 36 months, subject to the new employee's continued service with Arena through the applicable vesting dates. The inducement RSUs vest over four years, with 25% of the shares vesting on the first designated quarterly vesting date on or following the one-year anniversary of the vesting commencement date and the remaining 75% of the shares vesting in 12 substantially equal quarterly installments occurring on the following 12 quarterly vesting dates, subject to the new employee's continued service with Arena through the applicable vesting dates. The inducement stock options and inducement RSUs are subject to the terms and conditions of Arena's Amended and Restated 2020 Long-Term Incentive Plan.

About Arena Pharmaceuticals

ARENA Pharmaceuticals is a team with a singular purpose – deliver important medicines to patients.

In a rapidly changing global market, we work with a sense of urgency every day to understand the needs of all our stakeholders, identify bold, sometimes disruptive, ideas to get medicines to patients, and relentlessly execute until it’s done.

ARENA - Care More. Act Differently.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements include statements about Arena's purpose, work, understanding, ideas, and execution. For such statements, Arena claims the protection of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from Arena's expectations. Factors that could cause actual results to differ materially from the forward-looking statements include those disclosed in Arena's filings with the Securities and Exchange Commission. These forward-looking statements represent Arena's judgment as of the time of this release. Arena disclaims any intent or obligation to update these forward-looking statements, other than as may be required under applicable law.

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FAQ

What did Arena Pharmaceuticals announce on April 15, 2021?

Arena Pharmaceuticals announced the grant of inducement stock options and restricted stock units to 17 new employees.

How many stock options and RSUs were granted by Arena Pharmaceuticals?

Arena Pharmaceuticals granted a total of 50,785 stock options and 20,490 restricted stock units.

What is the exercise price for the stock options granted by Arena Pharmaceuticals?

The exercise price for the stock options is $67.99 per share.

What is the vesting period for the stock options and RSUs granted by Arena Pharmaceuticals?

Both the stock options and RSUs vest over a period of four years.

What is Nasdaq Listing Rule 5635(c)(4)?

Nasdaq Listing Rule 5635(c)(4) allows for inducement grants to new employees to attract talent.