Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) announced the grant of stock options for 195,000 shares to two new employees, effective April 4, 2022. The options, approved by the compensation committee, were granted without stockholder approval as inducements for employment. Each option has a 10-year term with an exercise price of $7.30, the closing price on April 1, 2022. Vesting occurs with 25% after one year and 75% in monthly installments over four years, contingent on continued employment. Provention focuses on developing therapies for immune-mediated diseases, including its lead drug candidate teplizumab.

Positive

• Granting stock options may attract talent, indicating positive company growth.
• Stock options with a favorable exercise price of $7.30 align with recent closing values, enhancing employee equity.

Negative

• None.

RED BANK, N.J., April 4, 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 two new employees to purchase an aggregate of 195,000 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 $7.30, the closing price per share of the Company's common stock as reported by Nasdaq on April 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.

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 Contacts:
Robert Doody, VP of Investor Relations
rdoody@proventionbio.com
484-639-7235

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SOURCE Provention Bio, Inc.

FAQ

What did Provention Bio announce on April 4, 2022?

Provention Bio announced the grant of stock options for 195,000 shares to two new employees as inducements for employment.

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

The exercise price of the stock options is $7.30.

How long is the term for the stock options granted by Provention Bio?

The stock options have a term of 10 years.

When will the stock options granted by Provention Bio fully vest?

The options will fully vest over four years, with 25% vesting after one year and the remainder vesting in monthly installments.

What is the stock symbol for Provention Bio?

The stock symbol for Provention Bio is PRVB.