Last checked at 4 Jun 2019 07:00
The Mission Marketing Group plc
Growth Share Scheme
The Mission Marketing Group plc ("themission", "the Company" or "the Group", AIM: TMMG), is pleased to announce that the performance condition of the Growth Share Scheme introduced in February 2017 to incentivise senior management to increase shareholder value (the "Growth Share Scheme") has been met.
Introduced when themission's share price was 41p and its market capitalisation was £34.5m, participants in the Growth Share Scheme were invited to subscribe, at nominal value, for Ordinary A shares in The Mission Marketing Holdings Limited (the "Growth Shares") which could be exchanged in April 2020 for an equivalent number of ordinary shares of 10p each ("Ordinary Shares") in themission (or cash, at the Company's discretion) if themission's share price equalled or exceeded 75p for at least 15 business days (the performance condition) during this period; if the performance condition was not met, the Growth Shares would have no value.
At the time the scheme was introduced, achieving the target share price of 75p would have resulted in a potential dilution to existing shareholders of less than 7% but would also have represented an increase in market capitalisation of over 80%. A total of 17 individuals were invited to participate in the scheme.
On 3 June 2019, the Group's share price closed at 82p, representing the fifteenth consecutive business day the share price had equalled or exceeded 75p. The Company's market capitalisation on 3 June 2019 was £70m.
David Morgan, Chairman, commented: "Incentivising key people is an essential component in growing a business and I am delighted that our objective has been realised in a way that rewards everyone's efforts and has benefited all of our shareholders given the spectacular resultant growth in our market capitalisation."
Enquiries:
David Morgan, Chairman Peter Fitzwilliam, Finance Director The Mission Marketing Group plc |
020 7462 1415 |
Mark Percy / James Thomas (Corporate Advisory) | |
Shore Capital (Nomad and Broker) | 020 7408 4090 |
About the Growth Share Scheme:
In total, 5,720,171 Growth Shares were subscribed for on 21 February 2017 by 10 board members and seven non-PDMR key managers. The subscription details for board members were announced at that time.
Each holder of Growth Shares is entitled to exercise a put option, to receive an equivalent number of Ordinary Shares, at any time during a period of 60 days from the announcement of the Group's financial results for the year ending 31 December 2019 (expected to be in April 2020) on condition that they remain employed by the Group at that time. The Company may elect to satisfy put options by a) transferring shares held by the Employee Benefit Trust, b) issuing new Ordinary Shares, c) making a cash payment equivalent to the value of Ordinary Shares at the time the put option is exercised, or d) any combination of a) to c).
No decision has yet been made by the board how the put options will be satisfied. If the board elects to issue new shares in full satisfaction of all put options, the maximum number of shares issued will be 5,720,171, representing 6.7% dilution. However, given the various permutations available to the Company, including satisfying put options in cash, it is not possible at this stage to determine with certainty what level of dilution will result.
About themission:
themission is a network of entrepreneurial marketing communications Agencies employing over 1,000 people in the UK, Asia and US, working together to provide Clients with the expertise and resource to make them more successful in today's dynamic environment.
www.themission.co.uk