Provention Bio Announces the Grant of Inducement Award

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) announced the grant of stock options on February 1, 2022, to a new non-executive employee for 30,000 shares. The options, part of the 2020 Inducement Plan, have an exercise price of $5.30, equal to the closing stock price on the grant date. They will vest 25% after one year and the remaining 75% in equal monthly installments over four years. This grant was made without stockholder approval, aligning with Nasdaq Listing Rule 5635(c)(4), and was approved by the Company's compensation committee.

Positive

• The grant of stock options incentivizes the new employee to contribute to the company's growth.
• The exercise price of $5.30 is aligned with the market value, indicating fair compensation linked to performance.

Negative

• None.

RED BANK, N.J., Feb. 4, 2022 /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 on February 1, 2022 to a new non-executive employee to purchase an aggregate of 30,000 shares of common stock. The stock options were granted without stockholder approval as inducements, material to the new non-executive employee 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 $5.30, the closing price per share of the Company's common stock as reported by Nasdaq on February 1, 2022. 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 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 disease. 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 type 1 diabetes, 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:
Robert Doody, VP of Investor Relations
rdoody@proventionbio.com
484-639-7235

View original content to download multimedia:https://www.prnewswire.com/news-releases/provention-bio-announces-the-grant-of-inducement-award-301475644.html

SOURCE Provention Bio, Inc.

FAQ

What stock options did Provention Bio grant on February 1, 2022?

Provention Bio granted stock options for 30,000 shares to a new non-executive employee.

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

The exercise price for the stock options is $5.30, equal to the closing price on the grant date.

How long is the term for the stock options granted by Provention Bio?

The stock options have a 10-year term.

Will the stock options granted by Provention Bio vest immediately?

No, the options will vest 25% after one year and the remaining 75% in equal monthly installments over four years.

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

No, the stock options were granted without stockholder approval as an inducement for employment.