Arcutis Biotherapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

On January 5, 2023, Arcutis Biotherapeutics (Nasdaq: ARQT) announced the granting of 17,050 restricted stock units and options for 33,550 shares to five new employees. These awards, approved by the Compensation Committee, are part of the 2022 Inducement Plan and are intended to incentivize new hires. The restricted stock units will vest over four years, while the stock options will also vest over the same period with specific vesting schedules. The options have a ten-year term with an exercise price of $14.77, reflecting the stock's closing price on the grant date.

Positive

• The grant of stock units and options indicates a commitment to incentivizing talent, potentially enhancing company performance.
• The structured vesting schedule may promote employee retention and motivation.

Negative

• None.

WESTLAKE VILLAGE, Calif., Jan. 05, 2023 (GLOBE NEWSWIRE) -- Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), an early commercial-stage biopharmaceutical company focused on developing meaningful innovations in immuno-dermatology, today reported the grant of an aggregate of 17,050 restricted stock units of Arcutis’ common stock as well as options to purchase an aggregate of 33,550 shares of Arcutis’ common stock to five newly hired employees. These awards were approved by the Compensation Committee of Arcutis’ Board of Directors and granted under the Arcutis Biotherapeutics, Inc. 2022 Inducement Plan, with a grant date of January 3, 2023, as an inducement material to the new employees entering into employment with Arcutis, in accordance with Nasdaq Listing Rule 5635(c)(4).

The restricted stock units vest over four years, with 25 percent vesting on each annual anniversary of the vesting commencement date, subject to the employee being continuously employed by Arcutis as of such vesting dates. The stock options vest over four years, with 25 percent vesting on the one-year anniversary of the vesting commencement date for such employee and the remainder vesting in 36 equal monthly installments over the following three years, subject to the employee being continuously employed by Arcutis as of such vesting dates. The stock options have a ten-year term and an exercise price of  $14.77 per share, equal to the per share closing price of Arcutis’ common stock as reported by Nasdaq on January 3, 2023.

Arcutis is providing this information in accordance with Nasdaq Listing Rule 5635(c)(4).

About Arcutis
Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) is a medical dermatology company that champions meaningful innovation to address the urgent needs of individuals living with immune-mediated dermatological diseases and conditions. With a commitment to solving the most persistent patient challenges in dermatology, Arcutis harnesses our unique dermatology development platform coupled with our dermatology expertise to build differentiated therapies against biologically validated targets. Arcutis’ dermatology development platform includes a robust pipeline with multiple clinical programs for a range of inflammatory dermatological conditions including scalp psoriasis, atopic dermatitis, and seborrheic dermatitis. For more information, visit www.arcutis.com or follow Arcutis on LinkedIn, Facebook, and Twitter.

Forward-Looking Statements
This press release contains “forward-looking” statements, including, among others, statements regarding its potential to address urgent needs and expectations with regard to the timing of data and regulatory events. These statements involve substantial known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements and you should not place undue reliance on our forward-looking statements. Risks and uncertainties that may cause our actual results to differ include risks inherent in the clinical development process and regulatory approval process, the timing of regulatory filings, the timing and expenses of commercialization efforts, and our ability to defend our intellectual property. For a further description of the risks and uncertainties applicable to our business, see the “Risk Factors” section of our Form 10-K filed with U.S. Securities and Exchange Commission (SEC) on February 22, 2022, as amended on March 3, 2022, as well as any subsequent filings with the SEC. We undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available.

Contacts:
Media
Amanda Sheldon, Head of Corporate Communications
asheldon@arcutis.com

Investors
Eric McIntyre, Head of Investor Relations
emcintyre@arcutis.com

FAQ

What stock options did Arcutis Biotherapeutics grant on January 5, 2023?

Arcutis Biotherapeutics granted 33,550 stock options to five new employees on January 5, 2023, with a ten-year term and an exercise price of $14.77.

What are the terms for the restricted stock units granted by Arcutis on January 5, 2023?

The 17,050 restricted stock units granted will vest over four years, with 25 percent vesting on each annual anniversary of the vesting commencement date.

What is the purpose of the stock awards granted by Arcutis?

The stock awards are part of the 2022 Inducement Plan and serve to incentivize new hires, enhancing retention and motivation within the company.

How does Arcutis ensure compliance with Nasdaq regulations in its stock grants?

The stock awards were granted in accordance with Nasdaq Listing Rule 5635(c)(4), ensuring compliance with regulatory requirements.