Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio (Nasdaq: PRVB) has granted stock options to two new employees, allowing them to purchase a total of 40,000 shares at an exercise price of $7.65, equal to the previous day's closing price. The options have a 10-year term and will vest 25% after one year, with the remaining 75% vesting monthly over the next three years. This grant is part of the company's 2020 Inducement Plan and was approved by the compensation committee without stockholder approval, aligning with Nasdaq Listing Rule 5635(c)(4).

Positive

• Granting stock options may attract talent and incentivize new hires.
• Options are tied to the company's stock performance, potentially aligning employee interests with shareholder value.

Negative

• None.

RED BANK, N.J., June 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 40,000 shares of common stock. 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 $7.65, yesterday's closing price per share of the Company's common stock as reported by Nasdaq. 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 Biologics License Application (BLA) for teplizumab, its lead investigational drug candidate, for the delay of 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 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 did Provention Bio grant on June 2, 2021?

Provention Bio granted stock options to two new employees for a total of 40,000 shares at an exercise price of $7.65.

What are the vesting terms for the stock options granted by Provention Bio?

The stock options vest 25% after one year, with the remaining 75% vesting in equal monthly installments over the following three years.

What is the significance of the inducement award granted by Provention Bio?

The inducement award aims to attract and retain new employees, aligning their interests with the company's stock performance.

Under which rule did Provention Bio grant the stock options without stockholder approval?

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