Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) announced the granting of stock options for 84,000 shares to three non-executive employees. These options were approved without stockholder consent under Nasdaq Listing Rule 5635(c)(4), as part of inducements for new employees. Each option has a 10-year term with an exercise price of $9.30, the closing price on December 1, 2022. Vesting of these options will occur 25% after one year and 75% through monthly installments over the next three years, contingent on continued employment.

Positive

• Granting stock options can attract skilled employees.
• Options priced at $9.30 align with the recent market price, reflecting confidence.

Negative

• No stockholder approval for stock options may raise governance concerns.

RED BANK, N.J., Dec. 2, 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 three non-executive employees to purchase an aggregate of 84,000 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 $9.30 the closing price per share of the Company's common stock as reported by Nasdaq on December 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 each 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 commercial-stage biopharmaceutical company focused on advancing the development and commercialization of investigational therapies that may intercept and prevent debilitating and life-threatening immune-mediated diseases. 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 T1D, 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 recent announcement did Provention Bio make regarding stock options?

Provention Bio announced the grant of stock options to purchase 84,000 shares to three non-executive employees as inducements.

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

The exercise price for the stock options is $9.30, equal to the closing price on December 1, 2022.

How will the stock options vest for Provention Bio's new employees?

The stock options will vest 25% on the one-year anniversary of the grant date and 75% in monthly installments over the following three years.

Was stockholder approval required for the stock options granted by Provention Bio?

No, the stock options were granted without stockholder approval under Nasdaq Listing Rule 5635(c)(4).