Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) announced the grant of stock options to Randy Anderson, Senior VP of Biometrics, for 130,000 shares of common stock. This grant, approved by the compensation committee, was made without stockholder approval in accordance with Nasdaq Listing Rule 5635(c)(4). The options have a 10-year term with an exercise price of $5.95, the closing price on January 3, 2022. Vesting occurs 25% after one year and monthly thereafter over four years, contingent on continued employment. Provention Bio focuses on therapies for immune-mediated diseases.

Positive

• Grant of stock options to a senior executive may align interests with shareholder value creation.
• The exercise price is set at a competitive level compared to market close.

Negative

• None.

RED BANK, N.J., Jan. 7, 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 to Randy Anderson, Senior Vice President of Biometrics to purchase an aggregate of 130,000 shares of common stock. The stock options were granted without stockholder approval as inducements, material to Mr. Anderson 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 $5.95, the closing price per share of the Company's common stock as reported by Nasdaq on January 3, 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

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SOURCE Provention Bio, Inc.

FAQ

What stock options were granted by Provention Bio (PRVB)?

Provention Bio granted stock options to Randy Anderson for 130,000 shares at an exercise price of $5.95.

Who received stock options from Provention Bio on January 7, 2022?

Randy Anderson, Senior Vice President of Biometrics, received stock options.

What is the vesting schedule for the stock options granted by Provention Bio?

The options vest 25% after one year and the remaining 75% in equal monthly installments over the next three years.

Why were the stock options granted without stockholder approval?

The options were granted as inducements for Mr. Anderson's employment under Nasdaq Listing Rule 5635(c)(4).