Collagen Solutions PLC Executive Share Options Alignment (4914Z)

TIDMCOS

RNS Number : 4914Z

Collagen Solutions PLC

03 September 2018

Collagen Solutions Plc

(the "Company" or the "Group")

Executive Share Options Alignment

Collagen Solutions plc (AIM: COS), the developer and manufacturer of biomaterials and regenerative medicines for the enhancement and extension of human life, announces an amendment to the terms of certain options issued under its existing share option scheme.

The Remuneration Committee has agreed to the equalisation of the performance conditions of certain outstanding share options in the Company issued to the senior management team. The performance conditions required for these options to vest will be adjusted to the attainment of a target closing share mid-price of 10p and the achievement of sustainable positive cash flows from operations (sustained for a period of at least six consecutive monthly periods), bringing them in line with the performance conditions attached to those options granted to the senior management team since July 2017. The change impacts the vesting criteria on the following options:

 
                                                              Existing Vesting criterion 
                                              Share price 
 Grant                                          at grant 
  Date         Who                 Number         date      Share Price    Condition   EPS 
  24/11/2014   Gill Black        1,000,000       7.75p          27p           OR       1p 
  01/04/2015   Tom Hyland         500,000       9.625p          27p           OR       1p 
  15/12/2015   Jamal Rushdy       1,100,000      8.89p          27p           OR       1p 
  15/12/2015   Jamal Rushdy      1,100,000       8.89p          58p           N/A      N/A 
  15/12/2015   Jamal Rushdy      1,100,000       8.89p                            Note 1 
  14/07/2016   Jamal Rushdy      2,700,000      8.125p          30p           N/A      N/A 
  15/02/2017   Kevin Darlling      500,000      5.625p          27p           OR       1p 
  07/03/2017   Brad Selman         500,000       5.75p          27p           OR       1p 
 

Note 1: Existing vesting criteria relate to non-market based performance conditions relating to the creation and realisation of value in the ChondroMimetic(R) business.

The expiration date on all options is 10 years from Grant Date. Vesting conditions under all other options remain unchanged.

David Evans Non-Executive Chairman said "As a result of the changes to the management team and Board over time there was a significant mis-alignment in option incentivisation between the newer appointees and those appointed earlier. The Remuneration Committee is aware of the need to provide a balance between potential shareholder returns with adequate incentivisation and is of the view that that the new targets set in relation to cash flow positivity and share price enhancement strike the right balance for the business going forward."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

Enquiries:

 
 Collagen Solutions Plc 
 Jamal Rushdy, CEO                                                       Via Walbrook 
 Hilary Spence, CFO 
 
 Cenkos Securities Plc (Nominated 
  Adviser and Broker) 
 Steve Cox (Corporate Finance)                                     Tel: [phone] 
 Stephen Keys 
 
 Walbrook PR Ltd                        Tel: [phone] or [e-mail] 
 Anna Dunphy                                                       Mob: [phone] 
 Helen Cresswell                                                   Mob: [phone] 
 
 

About Collagen Solutions:

Collagen Solutions Plc is a global supplier, developer, and manufacturer of medical grade collagen, tissues, and related medical devices and components for use in regenerative medicine, medical devices and in-vitro diagnostics and research. The Company is also expanding its range of biomaterials-based finished medical devices based on its internal and acquired intellectual property for commercialisation with partners via licensing and distribution arrangements, including ChondroMimetic(R). The Company's products are used in a wide variety of applications including orthopaedics, cardiovascular, dental, plastic surgery, wound healing, neurology and urology.

For more information go to: www.collagensolutions.com.

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September 03, 2018 02:00 ET (06:00 GMT)