Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) announced the grant of stock options to a new non-executive employee, totaling 7,000 shares, without stockholder approval, as per Nasdaq Listing Rule 5635(c)(4). The options have a 10-year term with an exercise price of $3.43, based on the closing price on July 1, 2022. They will vest 25% after one year and the remaining 75% monthly over four years, contingent on employment status. The company is dedicated to developing therapies for immune-mediated diseases, including a Biologics License Application for teplizumab to delay type 1 diabetes progression.

Positive

• Granting stock options may enhance employee retention and motivation.
• The exercise price of $3.43 aligns with market conditions as of July 1, 2022.
• Focus on developing therapies addressing significant health issues like immune-mediated diseases.

Negative

• None.

RED BANK, N.J., July 5, 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 a new non-executive employee to purchase an aggregate of 7,000 shares of common stock. The stock options were granted without stockholder approval as inducements, material to the new non-executive employee 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 $3.43, the closing price per share of the Company's common stock as reported by Nasdaq on July 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-301580737.html

SOURCE Provention Bio, Inc.

FAQ

What stock options did Provention Bio grant?

Provention Bio granted 7,000 stock options to a new non-executive employee.

What is the exercise price for the granted stock options?

The exercise price for the stock options is $3.43.

How will the stock options vest?

The stock options will vest 25% after one year and the remaining 75% in equal monthly installments over four years.

On which date was the stock option grant announced?

The stock option grant was announced on July 5, 2022.

What is Provention Bio's focus as a biopharmaceutical company?

Provention Bio focuses on developing therapies for immune-mediated diseases.