Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) announced the grant of stock options to 58 non-executive employees, totaling 763,000 shares. The options, which were issued without stockholder approval and approved by the compensation committee, have a 10-year term with an exercise price of $9.67. Options will vest 25% annually and 75% in equal monthly installments over four years, contingent on continued employment. This initiative aligns with Nasdaq Listing Rule 5635(c)(4) and is part of the company's strategy to attract and retain talent.

Positive

• Granting of stock options demonstrates proactive employee retention strategy.
• Stock options issued at $9.67 could incentivize employee performance aligning with company goals.

Negative

• None.

RED BANK, N.J., January 6, 2023 /PRNewswire/ -- Provention Bio, Inc. (Nasdaq: PRVB) (the "Company"), a biopharmaceutical company dedicated to intercepting and preventing immune-mediated diseases, today announced that the Company granted stock options to 58 non-executive employees to purchase an aggregate of 763,000 shares of common stock. The stock options were granted without stockholder approval as inducements, material to the new non-executive employees entering into employment with the Company, pursuant to Nasdaq Listing Rule 5635(c)(4) and were approved by the Company's compensation committee of the board of directors.

The stock options were granted with a 10-year term and an exercise price equal to $9.67 the closing price per share of the Company's common stock as reported by Nasdaq on January 3, 2023. Each of the options will vest 25% on the one year anniversary of the grant date and 75% in equal monthly installments thereafter so that the grant is fully vested on the four year anniversary of the grant date, provided that each new employee continues to serve as an employee of, or other service provider to, the Company on each such vesting date. The stock options are subject to the terms of the Provention Bio, Inc. 2020 Inducement Plan, as amended.

About Provention Bio, Inc.

Provention Bio, Inc. (Nasdaq: PRVB) is a commercial-stage biopharmaceutical company focused on advancing the development and commercialization of investigational therapies that may intercept and prevent debilitating and life-threatening immune-mediated diseases. The Company's pipeline includes clinical-stage product candidates that have demonstrated in pre-clinical or clinical studies proof-of-mechanism and/or proof-of-concept in autoimmune diseases, including T1D, celiac disease and lupus. Visit www.ProventionBio.com for more information and follow us on Twitter: @ProventionBio.

Internet Posting of Information:

Provention Bio, Inc. uses its website, www.proventionbio.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation F.D. Such disclosures will be included on the Company's website in the "News" section. Accordingly, investors should monitor this portion of the Company's website, in addition to following its press releases, SEC filings and public conference calls and webcasts.

Investor Contact:
Kristen Kelleher, Manager, Investor Relations
investorrelations@proventionbio.com

Media Contact:
Kaelan Hollon, VP, Corporate Communications
khollon@proventionbio.com
202-421-4921

 

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SOURCE Provention Bio, Inc.

FAQ

What stock options were granted by Provention Bio on January 6, 2023?

Provention Bio granted stock options to 58 non-executive employees to purchase 763,000 shares at an exercise price of $9.67.

How will the stock options granted by Provention Bio vest?

The stock options will vest 25% on the one-year anniversary and 75% in equal monthly installments over four years.

What is the term of the stock options granted by Provention Bio?

The stock options have a 10-year term.

Did Provention Bio need stockholder approval for the stock options granted?

No, the stock options were granted without stockholder approval as inducements for new employees.

What rule allows Provention Bio to grant stock options without stockholder approval?

The stock options were granted under Nasdaq Listing Rule 5635(c)(4).