People are talking about these Performance Rights as being a bonus for the past 12 months, however for anyone that cares to read the fine print, it’s obvious they are better referred to as Retention Rights as they are vested across four years on the condition LC remains employed at Imugene (there’s also a condition that performance conditions set by the board need to be met, but those conditions have not been made public so, for my mind, might as well not exist).
Given how close we apparently are to monetisation type inflection points, I would like to see publicly stated share price targets for each tranche but that hasn’t happened.
So, effectively the rights are an incentive for LC to remain at IMU and not jump ship. From that perspective, I think they are a good enticement, but I do understand the dissatisfaction being expressed over the declining SP, especially when capital is raised relative to the SP and at these low levels will result in greater dilution.
(I really wanted to say, long terms holders shouldn’t care about the interim SP because success will generate a significant return but lets be honest, the dilution from capital raises at low SP levels severely impacts the size of those potential returns so the BOD should also be working to progress the SP higher as more and more inflection points are met.)
IMU Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held
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