Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

On June 3, 2022, Provention Bio, Inc. (Nasdaq: PRVB) announced the granting of stock options for 166,000 shares to eight new employees, as an inducement for their employment, in accordance with Nasdaq Listing Rule 5635(c)(4). The options have a 10-year term with an exercise price of $4.00, equal to the company's stock closing price on June 1, 2022. Vesting occurs 25% after one year and the remaining 75% monthly over three years. Provention is focused on developing therapies for immune-mediated diseases and has filed a Biologics License Application for its lead candidate.

Positive

• Granting stock options may enhance employee retention and attract talent.
• The exercise price of $4.00 aligns with recent market performance.
• Company focuses on innovative treatments for immune-mediated diseases.

Negative

• Options granted without stockholder approval may raise governance concerns.

RED BANK, N.J., June 3, 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 eight new employees to purchase an aggregate of 166,000 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 $4.00, the closing price per share of the Company's common stock as reported by Nasdaq on June 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

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SOURCE Provention Bio, Inc.

FAQ

What stock options did Provention Bio grant on June 3, 2022?

Provention Bio granted stock options for 166,000 shares to eight new employees as an inducement for employment.

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

The exercise price of the stock options is $4.00, equal to the closing price on June 1, 2022.

How will the stock options vest for Provention Bio employees?

The options will vest 25% on the first anniversary and 75% in equal monthly installments over three years, contingent upon continued employment.

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

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

What is the purpose of the stock options granted by Provention Bio?

The stock options were granted as inducements material to the new employees entering into employment with the Company.