Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) announced the grant of stock options to a non-executive employee, allowing the purchase of 10,000 shares of common stock. The options, with a 10-year term, feature an exercise price of $4.52, reflecting the company's closing stock price on October 3, 2022. The vesting schedule includes 25% after one year and the remaining 75% in monthly increments over four years. This issuance aligns with Nasdaq Listing Rule 5635(c)(4) and received approval from the company's compensation committee.

Positive

• Issuance of stock options may attract talent and align employee incentives with company performance.
• The exercise price of $4.52 is favorable compared to the current market valuation, potentially reflecting growth prospects.

Negative

• The lack of stockholder approval might raise concerns about governance practices.

RED BANK, N.J., Oct. 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 a non-executive employee to purchase an aggregate of 10,000 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 $4.52 the closing price per share of the Company's common stock as reported by Nasdaq on October 3,  2022. 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, as amended.

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 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 are the details of the stock options granted by Provention Bio (PRVB)?

Provention Bio granted stock options to a non-executive employee for 10,000 shares at an exercise price of $4.52, with a vesting schedule of 25% after one year and the remainder over four years.

Why did Provention Bio (PRVB) grant stock options without stockholder approval?

The stock options were granted as inducements under Nasdaq Listing Rule 5635(c)(4), which allows such actions to attract talent without requiring stockholder approval.

What is the significance of the exercise price for Provention Bio's stock options?

The exercise price of $4.52 equals the closing stock price on October 3, 2022, which indicates that the options are priced competitively based on recent market performance.

How long does the stock option grant last for Provention Bio (PRVB)?

The stock options have a term of 10 years from the date of grant.