Hey @ChrisPones,For a multitude of reasons, the Board considers...

Hey @ChrisPones,

For a multitude of reasons, the Board considers that it is in the best interests of shareholders for Connexion’s broader team to own a meaningful number of escrowed shares in the company.

As a listed company with a strong balance sheet, Connexion has an opportunity to encourage and support wider and greater share ownership amongst its team, including all staff, management, and Non-ExecutiveDirectors, furthermore, the company can do so in a way that offers a unique benefit to participants and promotes loyalty to Connexion: the Loan Funded Share Plan (“Plan”).

The plan is only offered to participants having accrued a tenure with the company of at least one year, and both the asset (shares) and associated liability (loan) have an initial value equal to 1x the participant’s base salary.

Today, the company’s relevant base salary aggregate is approximately A$1.85m.

The plan vests over a subsequent 5-year period, with the participant only able to extract any value if they continue to remain employed by Connexion after five years from the time of their participation and the share price is higher than where it was at the time of participation.

The complete plan documentation contains terms otherwise customary for an Employee Share Scheme.As the plan involves the issuance of shares, the Board considers that it is important for the company to exercise its ability to neutralise any equity dilution by way of a share buyback, when it makes sense to do so, considering the market price of equity from time to time.

The size of the on-market share buyback allows Connexion to both neutralise any dilution arising under the plan, and further reduce the number of shares on issue on a net basis.

Hope that helps,