Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

On September 2, 2022, Provention Bio, Inc. (Nasdaq: PRVB) announced the grant of stock options to two non-executive employees totaling 38,000 shares of common stock. This grant, made without stockholder approval, serves as an employment inducement and adheres to Nasdaq Listing Rule 5635(c)(4). The options have a 10-year term with an exercise price of $4.51, and will vest 25% after one year and the remaining 75% in monthly installments over the next three years, contingent upon continued employment. Provention Bio is focused on therapies for immune-mediated diseases.

Positive

• None.

Negative

• Stock options granted without shareholder approval may raise governance concerns.
• The exercise price of $4.51 may be perceived as low if the stock declines.

RED BANK, N.J., Sept. 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 two non-executive employees to purchase an aggregate of 38,000 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 $4.51 the closing price per share of the Company's common stock as reported by Nasdaq on September 1^st 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 September 2, 2022?

Provention Bio granted stock options to two non-executive employees for an aggregate of 38,000 shares of common stock.

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

The exercise price is set at $4.51, equal to the closing price on September 1, 2022.

How do the stock options vest for Provention Bio employees?

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

Why were stock options granted without stockholder approval at Provention Bio?

The grant was made as an inducement material to the new employees' employment, according to Nasdaq Listing Rule 5635(c)(4).

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

Provention Bio specializes in developing therapies to intercept and prevent immune-mediated diseases.