RAK
11/07/2014 15:57
GENERAL
REL: 1557 HRS Rakon Limited
GENERAL: RAK: Rakon Limited Share Option Scheme
11 JULY 2014 (RAK)
RAKON LIMITED SHARE OPTION SCHEME
The board of Rakon has today approved a new employee share option scheme
(Scheme).
The initial offer under the Scheme is to fourteen (14) senior managers who
will be offered options over shares of Rakon. No Directors or executive
directors are included in the scheme.
The objective of the Scheme is to align the interests of these selected
senior employees with those of our shareholders by providing them with an
incentive to enhance long term shareholder value.
A total of five (5) million options are expected to be issued under the
Scheme in 2014. The options may only be exercised if the Rakon share price
during the 10 business days prior to exercise exceeds the benchmark price.
The benchmark price for the initial issue of options is NZD 30 cents. This
initial benchmark price is a 20% increase from the exercise price which was
set as a 10-day VWAP as at 9 July 2014 (NZD 25 cents).
The exercise period for the options is set according to the grant date. The
first exercise date is the second anniversary of the grant date for one half
of the options and the second exercise date is the third anniversary of the
grant date for the balance of options. Any options not exercised will lapse
if they are not exercised by the fourth anniversary of the grant date.
The options if exercised, will come from a combination of approximately 1.5
million shares currently held in the ESOP Trust and a balance of 3.5 million
newly issued shares, representing approximately 1.8% of the currently issued
shares in Rakon. Shareholder approval is not required for the initial issue
of options as a result of the exemption under Listing Rule 7.3.6. This rule
is also expected to apply to any shares which are issued on exercise of the
options.
-ends-
Contact:
Simon Bosley
Chief Financial Officer
(09) 571 9206
Rakon
www.rakon.com
End CA:00252674 For:RAK Type:GENERAL Time:2014-07-11 15:57:39
