The Board of Directors of Betolar Plc Resolved on Incentive Plans for Key Employees
Betolar Plc
Company Release
25.5.2022 at 4:30 PM EET
The Board of Directors of Betolar Plc Resolved on Incentive Plans for Key Employees
The Board of Directors of Betolar Plc has resolved on two new share-based incentive plans for the key employees of the group. The purpose of the plans is to align the objectives of the shareholders and the key employees in order to increase the value of the company in the long-term, as well as to ensure retention of the key employees in the company and offer them competitive incentive plans.
The Stock Option Plan
The Board of Directors of Betolar Plc has resolved to introduce a new stock option plan for the key employees. There is a weighty financial reason for the company to issue stock options as the stock options are intended to form a part of the incentive and retention program for the key employees of the group. The purpose of the stock options is to motivate the key employees to work on a long-term basis to increase shareholder value. In addition, the stock options are intended to ensure retention of the key employees in the company.
The total maximum number of stock options to be issued is 500,000, and they entitle their owners to subscribe for a total maximum of 500,000 new shares in the company or treasury shares held by the company. The stock options are issued gratuitously.
The shares that are subscribed with the stock options to be issued will account for a total maximum of 2.6% of all the company's shares and votes after possible share subscriptions if new shares are issued in the subscription. As a result of the share subscriptions made with the stock options, the number of shares in the company may increase by a total maximum of 500,000 shares if new shares are issued in the subscription.
The price of the shares subscribed with the Stock Options 2022 is EUR 5.96 per share, based on the trade volume weighted average quotation of the share on Nasdaq Helsinki Ltd from 9 December 2021 to 29 April 2022.
The share subscription price will be credited to the company’s reserve for invested unrestricted equity. The share subscription price will be deducted by the amount of dividends and distribution of assets per share paid annually.
The subscription period for the shares subscribed with the stock options is from 1 April 2025 to 28 February 2027.
The theoretical market value of one stock option is EUR 0.85 and the theoretical market value of all stock options combined is approximately EUR 430,000. The theoretical market value of a stock option has been calculated using the Black & Scholes stock option pricing model with the following input factors: share price EUR 4.70, share subscription price EUR 5.96, risk free interest rate 0%, time to maturity of stock options approximately 5 years and volatility 30%.
The Board of Directors resolved on the new stock option plan by virtue of an authorisation granted by the Annual General Meeting of the company on 23 March 2022. The target group of the stock option plan includes a maximum of 20 key employees, including the Chief Executive Officer of the company and other members of the Management Team.
Restricted Share Unit Plan 2022
The reward of the Restricted Share Unit Plan 2022 is based on a valid employment or director contract and the continuation of the employment or service relationship for a specified vesting period of at least 12 months. The vesting period may end on 31 August in 2023, 2024, 2025, 2026 or 2027. The reward will be distributed gratuitously after the end of the specified vesting period. The plan is intended only for specifically named key employees.
The rewards will be paid partly in Betolar Plc shares and partly in cash. The cash proportion of the reward is intended for covering taxes and statutory social security contributions arising from the reward to the participant. The rewards to be allocated from the Restricted Share Unit Plan correspond to the value of a total maximum of 100,000 shares of Betolar Plc, including the part of the reward paid in cash. The total present value of the Restricted Share Unit Plan 2022 will not exceed approximately EUR 470,000, estimated on the basis of the closing share price on the last trading day preceding this release.
BETOLAR PLC
Board of Directors
More information:
Tero Ojanperä, Chairman of the Board of Directors, tel. +358 40 558 3096
Certified Advisor:
Skandinaviska Enskilda Banken AB (publ) Helsinki Branch, tel. +358 9 6162 8000
About Betolar Plc
Betolar Plc is a Finnish materials technology company that offers the production of sustainable and low-carbon concrete with the Geoprime® solution. The solution converts several previously unused high-volume industrial side streams into a substitute for cement.
Betolar's innovation can significantly reduce CO2 emissions at a competitive cost compared to conventional cement-based concrete manufacturing, leveraging the existing manufacturing processes. Betolar’s mission is to enable the green transformation of various industries globally, especially in the construction, process and energy industries by providing solutions to utilise its unique materials technology.
Betolar was founded in 2016 and is headquartered in Kannonkoski, Finland. Betolar is listed on the Nasdaq First North Growth Market. https://www.betolar.com/
