Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) announced the grant of stock options to 22 new employees totaling 423,800 shares. These options, granted without stockholder approval under Nasdaq Listing Rule 5635(c)(4), were approved by the Company's compensation committee. Each option has a 10-year term with an exercise price of $7.17, equal to today’s closing price. The vesting schedule allows for 25% vesting after one year and the remainder in equal installments over the next three years. This initiative aims to attract talent to advance Provention's mission in immune-mediated diseases.

Positive

• Grant of 423,800 stock options to attract new talent.
• Stock options have a favorable 10-year term and exercise price aligns with market value.
• Structured vesting schedule incentivizes employee retention.

Negative

• None.

RED BANK, N.J., May 3, 2021 /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 22 new employees to purchase an aggregate of 423,800 shares of common stock. The stock options were granted without stockholder approval as inducements, material to the new 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 $7.17, today's closing price per share of the Company's common stock as reported by Nasdaq. Each of the options will vest 25% on the one year anniversary of the grant date and 75% in equal installments thereafter so that the grant is fully vested on the four year anniversary of the grant date, provided that the 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.

About Provention Bio, Inc.:
Provention Bio, Inc. (Nasdaq: PRVB) is a biopharmaceutical company focused on advancing the development of investigational therapies that may intercept and prevent debilitating and life-threatening immune-mediated diseases. The Biologics License Application (BLA) for teplizumab, its lead investigational drug candidate, for the delay of progression to Stage 3 clinical type 1 diabetes in at-risk individuals has been filed by the U.S. Food and Drug Administration (FDA). The Company's pipeline includes additional clinical-stage product candidates that have demonstrated in pre-clinical or clinical studies proof-of-mechanism and/or proof-of-concept in other autoimmune diseases, including 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 Contacts:
Robert Doody, VP of Investor Relations
rdoody@proventionbio.com
484-639-7235

 

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SOURCE Provention Bio, Inc.

FAQ

What did Provention Bio announce on May 3, 2021?

Provention Bio announced the grant of stock options to 22 new employees, totaling 423,800 shares, to attract talent.

What is the exercise price for the stock options granted by Provention Bio?

The exercise price for the stock options is $7.17, which is equal to the company's closing stock price on the grant date.

How are the stock options vested for new employees at Provention Bio?

The stock options vest 25% after one year, with the remaining 75% vesting in equal installments over the next three years.

Did Provention Bio require stockholder approval for the stock options grant?

No, the stock options were granted without stockholder approval as inducements under Nasdaq Listing Rule 5635(c)(4).

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

The stock options aim to attract and retain new employees critical to the company's development in immune-mediated diseases.