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15 Jul 2009 13:56
Alexander Mining plc
("Alexander", the "Company")
15 July 2009
Employees', directors' and consultants' share options
In the best interests of Alexander and its shareholders, the Board has a policy of incentivising and retaining its employees, directors and technical consultants appropriately. This is especially important given that the Company's core intellectual property and 'know-how' is integral to the commercialisation of its proprietary mineral processing technology. In recognition, in a recent review, the Remuneration Committee has advised the Board that the existing share options do not best serve their intended purpose because the average weighted exercise price of 21.7p is some 3.8 times higher than the recent 20 day average closing mid-market share price of 5.68p.
In order to address this, the Board has approved that it offers those holding certain share options the opportunity to exchange their existing share options for the same number of new share options with a lower exercise price. In addition, it has also approved the issuance of new share options.
Further to the Board's decision, the following changes have been made:
|
• |
A total of 4,358,333 share options issued to employees and directors with exercise prices ranging from 17.25p per share to 30p per share have been cancelled. An equal number of new share options have been issued in their place, with an exercise price of 10p per share, representing a 78% premium to the closing mid market share price on 14 July 2009, but otherwise subject to the same terms and conditions as the original share options. |
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• |
An additional 1,816,667 share options have been granted to employees, directors and the Company's technical consultant. All such options have a ten year total life, an exercise price of 10p per share, with one third vesting every twelve months over a three year period from date of grant. |
Details of the share options granted to the directors and the changes resulting from this reorganisation are as follows:
|
Director |
Options surrendered July 2009 |
Original exercise price pence/share |
Replacement options issued July 2009 |
New ptions issued July 2009 |
Total number of options July 2009 |
|
Matt Sutcliffe (Executive Chairman) |
1,000,000 |
30p |
1,000,000 |
150,000 |
1,150,000 |
|
Martin Rosser (Chief Executive Officer) |
750,000 500,000 |
30p 17.25p |
1,250,000 |
150,000 |
2,400,000 |
|
Roger Davey (Non-executive Director) |
250,000 |
30p |
250,000 |
150,000 |
650,000 |
|
Jim Bunyan (Non-executive Director) |
250,000 |
30p |
250,000 |
150,000 |
650,000 |
|
Emil Morfett (Non-executive Director) |
250,000 |
20.5p |
250,000 |
150,000 |
650,000 |
All options in issue following the re-organisation have an exercise price of 10p per share.
In addition, the vesting conditions attached to the share options issued to the Company's technical consultant, Dr Nicholas Welham, have been reviewed to reflect the changing priorities of the research and development work he is undertaking on behalf of the Company.
Significant enhancements have been made by Dr Welham which will impact the future commercial applications of the AmmLeach® technology. However, this benefit to the Company has not resulted in the options issued to Dr Welham vesting under the existing terms and conditions. The Board has decided that, due to the evolving nature of the research activities, vesting conditions based on continuing service are more appropriate for the options issued to Dr Welham to ensure that he is rewarded for pursuing the most commercially beneficial research activities on behalf of the Company. Accordingly, the existing terms and conditions attaching to the options, notified to the market on 13 June 2008, have been replaced by service time based vesting conditions such that: 500,000 options will vest on the date of this announcement, a further 500,000 options will vest on 12 June 2010 and 500,000 options will vest on 12 June 2011.
Finally, 2.75m share options with an exercise price of 30p per share which were awarded to consultants now no longer involved with the Company will lapse within 30 days of this announcement.
As a result of the above changes, the Company will have a total of 10,775,000 options outstanding at an exercise price of 10p per share, representing 8.0% of the existing share capital of the Company. This compares with 12,208,333 options (9.1%) prior to the changes made.
For further information please contact:
Martin Rosser Matt Sutcliffe
Chief Executive Officer Executive Chairman
Mobile: + 44 (0) 7770 865 341 Mobile: +44 (0) 7887 930 758
Alexander Mining plc
1st Floor
35 Piccadilly
London
W1J 0DW
Tel: +44 (0) 20 7292 1300
Fax: +44 (0) 20 7292 1313
Email: mail@alexandermining.com
Website: www.alexandermining.com
Nominated Adviser and Broker
Alasdair Younie/John Prior
Arbuthnot Securities Limited
Arbuthnot House
20 Ropemaker Street
London, EC2Y 9AR
Tel: +44 (0) 20 7012 2000
Public/Media Relations
Tim Blackstone
Britton Financial PR
43 Lambs Conduit Street
London
EC1N 3NG
Tel: +44 (0) 20 7242 9786
Mobile: +44 (0) 7957 140 416
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