Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) announced on November 4, 2022, the grant of stock options to five non-executive employees totaling 80,000 shares. These options, priced at $6.85 per share, were issued as inducements for new hires and did not require stockholder approval. The options have a 10-year term and will vest over four years, contingent on continued employment. The grant complies with Nasdaq Listing Rule 5635(c)(4) and follows approval from the company's compensation committee.

Positive

• The issuance of stock options may enhance employee retention and motivation.
• Options priced at $6.85 reflect recent market value, aligning employee interests with company performance.

Negative

• Stock options granted without shareholder approval may raise concerns about governance practices.

RED BANK, N.J., Nov. 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 to five non-executive employees to purchase an aggregate of 80,000 shares of common stock. The stock options were granted without stockholder approval as inducements, material to the new non-executive 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 $6.85 the closing price per share of the Company's common stock as reported by Nasdaq on November 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, 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 stock options did Provention Bio grant on November 4, 2022?

Provention Bio granted stock options to five non-executive employees for a total of 80,000 shares.

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

The exercise price for the stock options is $6.85 per share.

How long will the stock options granted by Provention Bio vest?

The options will vest over four years, with 25% vesting on the one-year anniversary and the remaining 75% vesting monthly.

Did Provention Bio require shareholder approval for the stock options granted?

No, the stock options were granted without shareholder approval as inducements for new employees.

Under what Nasdaq rule did Provention Bio grant the stock options?

The stock options were granted pursuant to Nasdaq Listing Rule 5635(c)(4).