PET meeting certain performance criteria - I'm suggesting this criteria is the same as / similar to what is stated here for vesting of these performance rights.
If PET is able to meet this criteria, the option to extend the distribution agreement is available. Why are they offering this performance rights issue - a large chunk of equity ?
I suggest they are worried about not meeting the criteria and are wanting to try and entangle the supplier.
A couple of interesting phrases used in this document -
"The Performance Rights will vest subject to the Performance Conditions being met or satisfied. The Board may at any time waive any terms or conditions including Performance Conditions in relation to a Participant’s Performance Rights."
"Time Hurdle – the Supplier remaining, in the reasonable opinion of the Company, as a consultant or supplier to the Company or its subsidiaries until 1 March 2025." What does "in the reasonable opinion of the Company" mean .... there is either a signed supplier agreement or not, it's not a matter of opinion.
They are already setting up re-negotiation in case of failure. There is competition about.
PET Price at posting:
3.6¢ Sentiment: Sell Disclosure: Not Held
(20min delay)