RE: Rns9 May 2022 10:57
@hkt, good morning.
My understanding of the RNS is that it is a document basically showing how many shares the company holds for it’s various share schemes. It is released every 6 months. So simply, the company holds 70,396 shares ready to issue for their Company Share Option Plan. It holds 2,056 for it’s Long Term Incentive Plan from 2017, and a further 153,612,238 for their Equity Warrants from 2020.
The Company Share Option Plan (CSOP) sounds like some kind of payment for employees, similar to how you may be able to put aside a bit of your salary as shares in your job if your company offers it.
The Long Term Incentive Plan sounds like bonuses for executives that were created back in 2017 (very similar to the LTIP that shareholders approved for Mooky and others back in 2020, the one that says if the share price reaches 190p-380p Mooky and other executives get more shares as a bonus). It appears that Mooky and executives still have some bonuses waiting from 2017, there will likely be some sort of performance that they need to achieve just like how it was for the 2020 LTIP.
The Equity Warrants 2020 is a bit ambiguous. The FY 2020 annual report tells us the following on page 35-36:
“ On 23 November 2020, the Group secured a new debt facility of $450.0m with a majority group of existing term loan lenders with a maturity of 24 May 2024. Alongside the new debt facility, the Group issued to participating TLB lenders 153,539,786 equity warrants representing in aggregate 9.99% of the fully diluted ordinary share capital of the Company assuming full exercise of the warrants. Each of the equity warrants that were issued alongside the new debt facility are exercisable into one ordinary share of the Company at an exercise price of 41.49 pence per share with the proceeds of such exercise being retained by the Company. The warrants are exercisable at any time over the next five years. The exercise price represents a 10% discount to the closing share price on 20 November 2020. The detachable equity warrants include an antidilution provision, meaning that the number of shares to be issued on exercise of the warrants is not fixed.”
Simply, it appears that there are warrants that allow the people who hold them to buy shares at a specific price. In this case, 41.49p. So if the share price reaches 100p tomorrow, then the holder of the equity warrants is able to buy shares at 41.49p instead, a nice discount for them. They can exercise the warrant at any point.
All of these shares have not yet been created or made yet, so that is something to look out for. If a holder of those equity warrants decides that they want their shares, then CINE needs to allot the shares for them. This would lead to dilution, but by the time that someone exercises the warrant the share price will likely be much higher than it is today, so shouldn’t affect us too badly at all. Same with the LTIP or CSOP. In total, 153,612,238 shares remain to issue
That is my underst
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