Provention Bio Announces the Grant of Inducement Awards

Rhea-AI Summary

Provention Bio, Inc. (Nasdaq: PRVB) granted stock options to 8 non-executive employees, totaling 124,000 shares of common stock. These options, approved by the compensation committee, were issued without stockholder approval as inducements for new employees, complying with Nasdaq Listing Rule 5635(c)(4). The options have a 10-year term with an exercise price of $8.59, the closing share price on February 1, 2023. Vesting is structured with 25% on the first anniversary and the remaining 75% in equal monthly installments over four years, contingent on continued employment.

Positive

• Stock options granted to new employees may enhance talent acquisition and retention.
• Vesting schedule encourages long-term commitment from employees.

Negative

• Stock options granted without stockholder approval may raise concerns about governance.
• Stock options could dilute existing shareholders' equity if exercised.

RED BANK, N.J., Feb. 3, 2023 /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 8 non-executive employees to purchase an aggregate of 124,000 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 $8.59 the closing price per share of the Company's common stock as reported by Nasdaq on February 1^st, 2023. 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 each 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 commercial-stage biopharmaceutical company focused on advancing the development and commercialization of investigational therapies that may intercept and prevent debilitating and life-threatening immune-mediated diseases. The Company's pipeline includes clinical-stage product candidates that have demonstrated in pre-clinical or clinical studies proof-of-mechanism and/or proof-of-concept in autoimmune diseases, including T1D, 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:
Kristen Kelleher, Senior Manager, Investor Relations
investorrelations@proventionbio.com

Media Contact:
Kaelan Hollon, VP, Corporate Communications
khollon@proventionbio.com
202-421-4921

View original content:https://www.prnewswire.com/news-releases/provention-bio-announces-the-grant-of-inducement-awards-301738562.html

SOURCE Provention Bio, Inc.

FAQ

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

The stock options were granted as inducements to attract and retain new non-executive employees.

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

The exercise price of the stock options is $8.59, based on the closing price on February 1, 2023.

How many shares were granted in the stock options by Provention Bio?

A total of 124,000 shares were granted in the stock options to 8 non-executive employees.

What is the vesting schedule for the stock options granted by Provention Bio?

The options vest 25% on the one-year anniversary of the grant date, with the remaining 75% vesting in equal monthly installments over the next three years.

Does the grant of stock options require shareholder approval?

No, the stock options were granted without shareholder approval as per Nasdaq Listing Rule 5635(c)(4).