2 Dec 2019 07:00
2 December 2019
AorTech International PLC
("AorTech", the "Company" or the "Group")
Adoption of New Unapproved Share Option Scheme
and
Grant of Share Options
AorTech International plc (AIM: AOR.L), the licensor of the world's leading long-term implantable biostable polymer (Elast-EonTM) and developer of medical devices utilising the key properties of Elast-EonTM, announces that it has adopted a new Unapproved Share Option Scheme and granted 360,000 share options over ordinary shares of £0.05 (the "Options") to certain Non-Executive Directors as follows:
David Richmond - 120,000 Options;
Geoff Berg - 120,000 Options; and
John Ely - 120,000 Options.
AorTech recognises the implications of granting share options to the above Non-Executive Directors and that it might be seen as prejudicing their independence. In addition to performing their roles as Non-Executive Directors, each of David, Geoff and John has become actively involved and is contributing significantly to the design and development of AorTech's portfolio of medical devices. In particular, David Richmond is contributing to the manufacturing requirements and processes; Geoff Berg is advising on design and related surgical requirements of the products; and John Ely is guiding the products through the stringent regulatory environment.
Having considered the risk to perceived independence against that of retaining the services of the individuals, AorTech decided that aligning the interests of the Non-Executive Directors with those of shareholders was in the best interests of the Company.
Although implementing this scheme does not require shareholder approval, as recommended under the QCA Corporate Governance Code, the Board has consulted with the Company's major shareholders who are supportive.
The exercise price of the Options is 92.5 pence per share, representing the mid-market closing price of an AorTech share on 29 November 2019, the business day preceding this announcement.
The vesting terms of the Unapproved Share Option Scheme are in similar terms to those of the EMI Share Option Plan as summarised in Part IV of the Company's circular dated 22 May 2018 and approved by shareholders at the Company's general meeting on 8 June 2018. The key terms are that: 20 per cent of the Options granted vest after 3 years; 30 per cent upon the Group receiving either CE Marking or FDA approval for one of its devices in development; and the balance of 50 per cent on the Company's share price being at least £3.00 per share for ten consecutive trading days. As with the EMI Share Option Plan, if the Optionholder ceases to be a director of the Company after the relevant vesting date the Options lapse 90 days after cessation unless the Board resolves to allow exercise within that period.
For further information contact:
AorTech International plc Tel: +44 (0)7730 718296
Bill Brown, Chairman
Shore Capital Tel: +44 (0)20 7408 4080
Tom Griffiths/David Coaten
About AorTech:
AorTech has developed biostable, implantable polymers, including Elast-Eon™ and ECSil™, the world's leading long-term implantable co-polymers, now manufactured on its behalf by Biomerics LLC in Utah, USA. Elast-Eon™ and ECSil™'s biostability is comparable to silicone while exhibiting excellent mechanical, blood contacting and flex-fatigue properties. These polymers can be processed using conventional thermoplastic extrusion and moulding techniques. With over 6 million implants and over 10 years of successful clinical use, AorTech polymers are proven in long term life enabling applications.
In addition to continuing to exploit AorTech's Intellectual Property related to the world class biomaterial - Elast-Eon™, AorTech is now incorporating this material into a number of medical devices of our own design. Elast-Eon™ has first class long term blood contacting properties and, as a result, all of the initial products being developed are for the cardio vascular field. Each device is being designed to have improved clinical outcomes over current device technology, eliminating the use of animal sourced material whilst allowing procedures to remain the same, therefore avoiding having to retrain surgeons in new ways of operating.