Arcutis Biotherapeutics, Inc., a biopharmaceutical company, completed its one-time stock option exchange program on February 12, 2024. The program allowed eligible employees and consultants to exchange their outstanding stock options for new restricted stock units (RSUs) at varying exchange ratios, depending on the exercise price of the options. The exchange ratios ranged from 2-for-1 to 3-for-1. A significant 98% of the eligible options were exchanged, resulting in the cancellation of options to purchase 5,063,689 shares of Arcutis common stock. In return, approximately 2,131,874 new RSUs were issued under the company's 2020 Equity Incentive Plan. The surrendered stock options had exercise prices substantially higher than Arcutis's recent stock trading prices. The company's executive officers, including Todd Franklin Watanabe, Masaru Matsuda, J.D., and...Show More

Arcutis Biotherapeutics, Inc., a biopharmaceutical company, completed its one-time stock option exchange program on February 12, 2024. The program allowed eligible employees and consultants to exchange their outstanding stock options for new restricted stock units (RSUs) at varying exchange ratios, depending on the exercise price of the options. The exchange ratios ranged from 2-for-1 to 3-for-1. A significant 98% of the eligible options were exchanged, resulting in the cancellation of options to purchase 5,063,689 shares of Arcutis common stock. In return, approximately 2,131,874 new RSUs were issued under the company's 2020 Equity Incentive Plan. The surrendered stock options had exercise prices substantially higher than Arcutis's recent stock trading prices. The company's executive officers, including Todd Franklin Watanabe, Masaru Matsuda, J.D., and Patrick E. Burnett, M.D., Ph.D., participated in the Option Exchange, surrendering a combined total of 1,312,300 stock options for 573,482 new RSUs. The new RSUs are subject to a new vesting schedule based on the original grant date of the exchanged options and will vest over periods ranging from four to twelve quarters, contingent upon the holder's ongoing service to the company.