This is very common in start ups, micro, small and mid-caps whereby as an incentive to retain talent, the Company grants key employees options that vest over a certain duration, conditions and are completely at the discretion of the Board (as per the Incentive Schedule). Once vested, the legend on the unquoted shares is removed and they are able to be freely traded noting that the applicable loan must be repaid.
Without digging around into the annual reports (which should state all unquoted securities), the employee(s) will have to de-legend the shares with the registry, if they wish to sell the shares they need to first sell [X] number of shares to repay the loan (first obligation), then the balance of the proceeds goes to the employee. They can continue to hold the option (so long as their is no expiry date). Note that the share price in December 2021 was ~34 cents so these would of been attractive incentives (we voted them in >99% yes at the AGM), today they are worthless and more a liability (e.g. imagine you worked somewhere, instead of a cash bonus, you got these options and the share price was $0.34 i.e., 3-4x in the money, suddenly at vesting time, the share price is at your strike/loan price, essentially either do nothing & hold or liquidate + move on).
Funnily enough I've given advice recently to 2 employees at a different listed company whereby the loan funded shares went 14x and now are underwater & worthless (~3 years later).
All in all, these shares at gross face are worth $1.34m, net of costs at most worth $88k which is not much in the scheme of things.
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