Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) granted stock options for 118,000 shares to nine non-executive employees as part of an inducement to join the company. The options, with a 10-year term, have an exercise price of $3.67, equal to the closing price on August 1, 2022. Vesting occurs 25% after one year, with the remaining 75% vesting monthly over four years. This grant was made without stockholder approval under Nasdaq Listing Rule 5635(c)(4) and was sanctioned by the board's compensation committee.

Positive

• None.

Negative

• Granting stock options without stockholder approval may raise governance concerns.
• Potential dilution of shares if options are exercised.

RED BANK, N.J., Aug. 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 nine non-executive employees to purchase an aggregate of 118,000 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 $3.67, the closing price per share of the Company's common stock as reported by Nasdaq on August 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:
Robert Doody, VP, Investor Relations
rdoody@proventionbio.com 484-639-7235

Media Contact:
Kaelan Hollon, VP, Corporate Communications
khollon@proventionbio.com 202-421-4921

View original content to download multimedia:https://www.prnewswire.com/news-releases/provention-bio-announces-the-grant-of-inducement-awards-301598326.html

SOURCE Provention Bio, Inc.

FAQ

What stock options were granted by Provention Bio on August 2, 2022?

Provention Bio granted options for 118,000 shares to nine non-executive employees at an exercise price of $3.67.

What is the vesting schedule for the stock options granted by Provention Bio?

The options vest 25% after one year and 75% in equal monthly installments over the next three years.

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

The inducement awards were granted to encourage new non-executive employees to join the company.

How does the stock option grant affect Provention Bio's shareholders?

The stock option grant could potentially dilute shareholder equity if the options are exercised.