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

Rhea-AI Summary

Arcutis Biotherapeutics (Nasdaq: ARQT) announced the grant of 57,500 restricted stock units to six new employees. These units were approved by the Compensation Committee and are part of the Arcutis Biotherapeutics 2022 Inducement Plan, effective June 3, 2024. The grants are intended to attract new talent, as stipulated under Nasdaq Listing Rule 5635(c)(4). The units will vest over four years, with 25% vesting each year, contingent upon ongoing employment with the company.

Positive

• Granted 57,500 restricted stock units to attract new talent.
• Inducement grants align with Nasdaq Listing Rule 5635(c)(4).
• Four-year vesting schedule promotes employee retention.

Negative

• Potential shareholder dilution due to the issuance of new stock units.
• Restricted stock units are contingent upon continuous employment, risking unvested units if employees leave the company.

WESTLAKE VILLAGE, Calif., June 05, 2024 (GLOBE NEWSWIRE) -- Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), a commercial-stage biopharmaceutical company focused on developing meaningful innovations in immuno-dermatology, today reported the grant of an aggregate of 57,500 restricted stock units of Arcutis’ common stock to six 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 June 3, 2024, 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.

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

About Arcutis
Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) is a commercial-stage 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 has a growing portfolio including two FDA approved products that harness 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 and body psoriasis, atopic dermatitis, and alopecia areata. For more information, visit www.arcutis.com or follow Arcutis on LinkedIn, Facebook, Instagram, and X.

Forward-Looking Statements
Arcutis cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the Company’s current beliefs and expectations. 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 27, 2024, as well as any subsequent filings with the SEC. You should not place undue reliance on any forward-looking statements in this press release. We undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

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

Investors
Latha Vairavan, Vice President, Finance and Investor Relations
lvairavan@arcutis.com

FAQ

What did Arcutis Biotherapeutics announce on June 5, 2024?

Arcutis Biotherapeutics announced the grant of 57,500 restricted stock units to six new employees.

What is the stock symbol for Arcutis Biotherapeutics?

The stock symbol for Arcutis Biotherapeutics is ARQT.

Under which plan were the restricted stock units granted?

The restricted stock units were granted under the Arcutis Biotherapeutics 2022 Inducement Plan.

What is the vesting schedule for the restricted stock units granted by Arcutis Biotherapeutics?

The restricted stock units will vest over four years, with 25% vesting each year.

Why were these restricted stock units granted by Arcutis Biotherapeutics?

The units were granted as an inducement material to attract new employees in accordance with Nasdaq Listing Rule 5635(c)(4).