Falanx Group Limited Grant of Share Options (3054L)

TIDMFLX

RNS Number : 3054L

Falanx Group Limited

21 December 2018

Falanx Group Limited

("Falanx" or "the Company")

Grant of Share Options

Falanx Group Ltd announces the grant of 4,750,000 share options to the Directors and 9,300,000 share options to other management and employees (together the "Share Options").

The Company considers it important to incentivise employees and Directors through share incentive arrangements and to align them with shareholders to create long term value.

Options under this plan are granted with a strike price of 3.5p each which is approximately 19% higher than the closing mid-market price on 20 December 2018. The option scheme is structured so that there are only returns for participants where the share price has very significantly increased from the current levels. Individual Director grants are set out below:

Individual Director Option Grants

 
                 Current Share   New Grant   Enlarged Share Options 
                    Options 
 Mike Read         5,000,000     1,500,000         6,500,000 
                --------------  ----------  ----------------------- 
 Ian Selby         5,000,000     1,500,000         6,500,000 
                --------------  ----------  ----------------------- 
 John Blamire      5,000,000     1,500,000         6,500,000 
                --------------  ----------  ----------------------- 
 Emma Shaw         1,250,000      250,000          1,500,000 
 
 

Vesting Criteria

These Share Options vest in three tranches: the first tranche when the share price reaches 6.5p (25%), the second tranche when the share price reaches 9p (25%) and the third tranche when the share price reaches 12p (50%). The Share Options only vest if the average share price has reached the relevant threshold level for a period of three months, save for the event of a change of control in the Company, in which case they will vest in full. Based on the mid-market closing price on 20(th) December 2018 of 2.95p there is no gain at all unless the share price increases by 120% and full gains are not achieved until a gain of 307% has been achieved.

A total of 9,300,000 options have been issued to other staff in the business. All vest as above save for a total of 1,500,000 which have been issued to senior technical staff involved in the development of key technologies and their vesting is based on demanding incremental technical deliveries.

These option grants are under the Company's EMI scheme where the individual and the grant meets EMI criterial. Grants which do not are under the same rules as the EMI scheme but will not benefit from EMI tax status. The Share Options have an exercise period of 10 years from grant under the rules of the EMI Scheme.

The total number of employee share options currently outstanding represents 13.0% of the TVR and 11.5% on a fully diluted basis.

Enquiries:

 
 Falanx Group Limited                   www.falanx.com 
  Mike Read, Chief Executive Officer 
 
   SPARK Advisory Partners Limited 
   Nominated Adviser 
   Matt Davis / James Keeshan           [phone] 
 
 Turner Pope Investments (TPI) 
  Ltd 
  Broker 
  Ben Turner / James Pope 
 
  IFC Advisory Ltd                      [phone] 
  Financial PR & IR 
  Graham Herring 
  Miles Nolan 
  Zach Cohen                            [phone] 
 
 

About Falanx

Falanx Group Limited, is a global intelligence and cyber defence provider working with blue chip and government clients. It operates the MidGARD cyber monitoring platform for corporate and governmental customers which utilises a combination of proprietary and third-party processes and technologies. For more information: http://www.falanx.com/

The notification below, made in accordance with the requirements of the EU Market Abuse Regulation, provides further detail.

 
 1    Details of the person discharging managerial responsibilities 
       / person closely associated 
 a)   Name                           1. Mike Read 
                                      2. Ian Selby 
                                      3. John Blamire 
                                      4. Emma Shaw 
     ------------------  ----------------------------------------------- 
 2    Reason for the notification 
     ------------------------------------------------------------------- 
 a)   Position/status          1. Chairman and Chief Executive Officer; 
                                Director 
                                2. Chief Financial Officer; Director 
                                3. Chief Operations Officer; Director 
                                4. Non-Executive Director; Director 
     ------------------  ----------------------------------------------- 
 b)   Initial             Initial notification 
       notification 
       /Amendment 
     ------------------  ----------------------------------------------- 
 3    Details of the issuer, emission allowance market participant, 
       auction platform, auctioneer or auction monitor 
     ------------------------------------------------------------------- 
 a)   Name                Falanx Group Limited 
     ------------------  ----------------------------------------------- 
 b)   LEI                 213800YO4F9CUQLALV19 
     ------------------  ----------------------------------------------- 
 4    Details of the transaction(s): section to be repeated 
       for (i) each type of instrument; (ii) each type of transaction; 
       (iii) each date; and (iv) each place where transactions 
       have been conducted 
     ------------------------------------------------------------------- 
 a)   Description         Options over Ordinary Shares 
       of the 
       financial 
       instrument, 
       type of             ISIN: VGG3338A1075 
       instrument 
       Identification 
       code 
     ------------------  ----------------------------------------------- 
 b)   Nature              Grant of options 
       of the 
       transaction 
     ------------------  ----------------------------------------------- 
 c)   Price(s)              Price:               Volume 
       and volume(s)           3.5p 
                                                  1. 1,500,000 
                                      ------------------------ 
                                                  2. 1,500,000 
                                      ------------------------ 
                                                  3. 1,500,000 
                                      ------------------------ 
                                                  4. 250,000 
                                      ------------------------ 
     ------------------  ----------------------------------------------- 
 d)   Aggregated          - volume: 4,750,000 
       information         - Price: 3.5p 
     ------------------  ----------------------------------------------- 
 e)   Date of             21 December 20018 
       the transaction 
     ------------------  ----------------------------------------------- 
 f)   Place of            Not on a trading venue 
       the transaction 
     ------------------  ----------------------------------------------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

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December 21, 2018 08:01 ET (13:01 GMT)