Arcutis Biotherapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Arcutis Biotherapeutics (ARQT) has announced the grant of 62,000 restricted stock units to eight newly hired employees. The awards were approved by the company's Compensation Committee and granted under the Arcutis Biotherapeutics 2022 Inducement Plan, with a grant date of February 3, 2025. The stock units are designed as an employment inducement in compliance with Nasdaq Listing Rule 5635(c)(4).

The restricted stock units feature a four-year vesting schedule, with 25% vesting occurring on each annual anniversary of the vesting commencement date. Continued employment with Arcutis is required for vesting eligibility.

Positive

• Employee retention strategy implemented through equity-based compensation
• Structured vesting schedule (25% annually) promotes long-term employee commitment

Negative

• Potential shareholder dilution from 62,000 new restricted stock units

WESTLAKE VILLAGE, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), a commercial-stage biopharmaceutical company focused on developing meaningful innovations in immuno-dermatology, today reported the grant of an aggregate of 62,000 restricted stock units of Arcutis’ common stock to eight newly hired employees. These awards were approved by the Compensation Committee of Arcutis’ Board of Directors and granted under the Arcutis Biotherapeutics, Inc. 2022 Inducement Plan, with a grant date of February 3, 2025, as an inducement material to the new employees entering into employment with Arcutis, in accordance with Nasdaq Listing Rule 5635(c)(4).

The restricted stock units vest over four years, with 25 percent vesting on each annual anniversary of the vesting commencement date, subject to the employee being continuously employed by Arcutis as of such vesting dates.

Arcutis is providing this information in accordance with Nasdaq Listing Rule 5635(c)(4).

About Arcutis
Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) is a commercial-stage medical dermatology company that champions meaningful innovation to address the urgent needs of individuals living with immune-mediated dermatological diseases and conditions. With a commitment to solving the most persistent patient challenges in dermatology, Arcutis has a growing portfolio including three FDA approved products that harness our unique dermatology development platform coupled with our dermatology expertise to build differentiated therapies against biologically validated targets. Arcutis’ dermatology development platform includes a robust pipeline with multiple clinical programs for a range of inflammatory dermatological conditions including scalp and body psoriasis, atopic dermatitis, and alopecia areata. For more information, visit www.arcutis.com or follow Arcutis on LinkedIn, Facebook, Instagram, and X.

Forward-Looking Statements
Arcutis cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the Company’s current beliefs and expectations. These statements involve substantial known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements and you should not place undue reliance on our forward-looking statements. Risks and uncertainties that may cause our actual results to differ include risks inherent in the clinical development process and regulatory approval process, the timing of regulatory filings, the timing and expenses of commercialization efforts, and our ability to defend our intellectual property. For a further description of the risks and uncertainties applicable to our business, see the “Risk Factors” section of our Form 10-K filed with U.S. Securities and Exchange Commission (SEC) on February 27, 2024, as well as any subsequent filings with the SEC. You should not place undue reliance on any forward-looking statements in this press release. We undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contacts:
Media
Amanda Sheldon, Head of Corporate Communications
media@arcutis.com

Investors
Latha Vairavan, Vice President, Finance and Corporate Controller
ir@arcutis.com

FAQ

How many restricted stock units did Arcutis Biotherapeutics (ARQT) grant in February 2025?

Arcutis Biotherapeutics granted 62,000 restricted stock units to eight newly hired employees in February 2025.

What is the vesting schedule for ARQT's February 2025 restricted stock units grant?

The restricted stock units vest over four years, with 25% vesting on each annual anniversary of the vesting commencement date.

Under which plan were ARQT's February 2025 restricted stock units granted?

The restricted stock units were granted under the Arcutis Biotherapeutics 2022 Inducement Plan.

What is the purpose of ARQT's February 2025 restricted stock units grant?

The restricted stock units were granted as an inducement material to attract new employees entering into employment with Arcutis.