RE: Fools rush in where angels fear to tread.23 Mar 2020 12:28
Executive Salary Scheme
As previously announced, the Company's directors and executive managers ("Executive Management") currently receive 50% of their fees in Company shares (the "Executive Salary Scheme" and "Remuneration Shares"). The Executive Salary Scheme has assisted the Company in both managing its cash and also ensuring Executive Management interests are aligned with the Company's shareholders.
The Remuneration Shares take the form of nil cost options, which provided the Company with more flexibility but does not change the number of shares to be issued in any way or provide any additional value to the Executive Management.
As at 31 December 2019, the fees to be settled by the issue of Remuneration Shares equated to 36,515,008 shares (equal to approximately 4.3% of the Company's current issued share capital).
Remuneration Shares are calculated monthly using a fixed share price therefore the timing of issuance of Remuneration Shares is not relevant to the number of Remuneration Shares issued. The fixed share price has ranged between 3.5p and 5.1p.
The Company has received an election from certain Executive Management members (including Mr Koot) to convert their options into ordinary shares of the Company, as is their contractual right pursuant to the Executive Salary Scheme. As such, the Company will issue 15,169,886 new ordinary shares to those Executive Management members (the "Executive Management Shares"), representing 1.8% of the 848,260,742 ordinary shares in issue prior to the issuance of the Executive Management Shares. The Company expects to record the issue price of the shares in its books at the closing share price on the day before issuance.
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