Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) has granted stock options totaling 550,000 shares to two new executives: Chief Financial Officer Thierry Chauche received 375,000 options, while Senior VP of Clinical Development Jan Hillson was awarded 175,000. The options, granted without stockholder approval, have a 10-year term with an exercise price of $6.95, the closing price from the previous day. Chauche's options vest based on performance milestones, while Hillson's vest primarily based on time, both requiring continued employment for vesting.

Positive

• Granting of 550,000 stock options may attract and retain skilled executives.
• Performance-based vesting for Chauche aligns interests with company performance.

Negative

• Stock options granted without stockholder approval may raise governance concerns.

RED BANK, N.J., Dec. 2, 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 two new employees to purchase an aggregate of 550,000 shares of the Company's common stock. 375,000 stock options were granted to Thierry Chauche, the Company's Chief Financial Officer, and 175,000 stock options were granted to Jan Hillson, the Company's Senior Vice President of Clinical Development. 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 $6.95, yesterday's closing price per share of the Company's common stock as reported by Nasdaq.

For the options granted to Thierry Chauche, 50% of the options will vest based on the achievement of certain performance based milestones related to teplizumab and other goals, and the remaining 50% of the options will vest in equal annual installments of 12.5% beginning on the first anniversary of the grant date, so that 50% of the award will be fully vested on the four year anniversary of the grant date, provided that Mr. Chauche continues to serve as an employee of, or other service provider to, the Company on each such vesting date.

For the options granted to Jan Hillson, 25% of the options will vest on the one year anniversary of the grant date and 75% of the options will vest in equal monthly installments thereafter so that the grant is fully vested on the four year anniversary of the grant date, provided that Ms. Hillson 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 Contacts:
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 on December 2, 2021?

Provention Bio granted 550,000 stock options to two executives: 375,000 to CFO Thierry Chauche and 175,000 to SVP Jan Hillson.

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

The exercise price for the stock options granted is $6.95, which is the closing price from the day before the grant.

Are the stock options granted to executives of Provention Bio performance-based?

Yes, 50% of Thierry Chauche's options are performance-based while Jan Hillson's options vest primarily based on time.

How long do the stock options granted by Provention Bio last?

The stock options have a 10-year term.

Who approved the stock options granted by Provention Bio?

The stock options were approved by the Company's compensation committee.