EKF Diagnostics Holdings PLC Executive Performance Bonus (1445V)
August 05 2020 - 1:01AM
UK Regulatory
TIDMEKF
RNS Number : 1445V
EKF Diagnostics Holdings PLC
05 August 2020
This announcement contains inside information
for the purposes of Article 7 of Regulation (EU) No 596/2014
(MAR)
EKF Diagnostics Holdings plc
("EKF", the "Company" or the "Group")
Executive Performance Bonus
EKF Diagnostics Holdings plc (AIM: EKF), the AIM listed
point-of-care business, announces that further to the announcement
on 6 November 2019, and reflecting the continued value creation for
shareholders in the current financial year, EKF's Remuneration
Committee ("RemCo") has determined that it is appropriate that the
Executive Directors receive an equal performance-related payment of
approximately GBP227,300 each (the "Bonus").
The Company currently operates a cash-settled, share based
incentive (the "Incentive") for the Company's CEO and Finance
Director (the "Executive Directors"), which is designed to pay out
in the event that the Company is acquired by a third party (an
"Exit"). The Bonus recognises the further delivery of performance
in the business by Executive Management, in the absence of any
other performance-related pay mechanism, and substitutes value
creation for an Exit as the relevant trigger for payment on this
portion of the Incentive. The Bonus has been calculated using a 2
pence increase over the baseline share price which was reset in
November 2019 to 27 pence. Based on the closing mid-market price on
4 August 2020, EKF's share price has improved by nearly 50% since
the start of the current financial year and by circa 56% since 5
November 2019.
Following payment of the Bonus, RemCo considers that the
remaining unpaid amounts under the Incentive continue to provide
strong motivation to the Executive Directors, who will receive a
further potential variable reward in the event of an Exit, equal to
5% of the excess value obtained over the new baseline price of 29
pence per share.
Any future amounts payable to the Executive Directors under the
Incentive in the event of an Exit take into account previously paid
amounts through the resetting of the baseline price. Accordingly,
the aggregate amount payable to the Executive Directors under the
Incentive is unchanged by the payment of the Bonus and the total
value available to Shareholders on an Exit will therefore be
unaffected by the prior, partial utilisation of the Incentive to
provide performance-related pay.
Further disclosure will be made in the Company's next Annual
Report as to the independent assessment of the carrying value of
the Inventive arrangement following the above payment.
As at 31 July 2020, the Company had cash net of borrowings
approximately GBP16.0m. The Company's Renalytix AI plc securities
(2,677,981 shares) had a fair value of GBP15.4m, based on the
closing mid-market price on the same date. The Company therefore
remains very well capitalised to execute its plans and continues to
generate strong operating and net cashflows.
The Bonus is considered to represent a related party transaction
under the AIM Rules for Companies. The Non-executive Directors,
having consulted with N+1 Singer as the Company's nominated
adviser, consider the terms of the Bonus to be fair and reasonable
in so far as shareholders are concerned.
The persons responsible for arranging the release of this
Announcement on behalf of the Company are Julian Baines, CEO, and
Richard Evans, FD and COO respectively.
EKF Diagnostics Holdings plc www.ekfdiagnostics.com
Christopher Mills, Non-executive Chairman Tel: +44 (0) 29 2071 0570
Julian Baines, CEO
Richard Evans, FD & COO
N+1 Singer Tel: 020 7496 3000
Aubrey Powell / George Tzimas (Corporate
Finance)
Tom Salvesen (Corporate Broking)
Walbrook PR Limited Tel: +44 (0) 20 7933 8780 or ekf@walbrookpr.com
Paul McManus / Lianne Cawthorne Mob: +44 (0) 7980 541 893 / +44 (0) 7584
391 303
About EKF Diagnostics Holdings plc ( www.ekfdiagnostics.com
)
EKF is a leading point-of-care diagnostics and central
laboratory assay manufacturer with an estimated 80,000 hemoglobin,
hematocrit, HbA1c, glucose and lactate analyzers in regular use
across more than 100 countries. EKF specializes in developing tests
for use in anemia and diabetes diagnosis and management, as well as
providing a portfolio of reagents for use in clinical chemistry
analyzers.
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 rns@lseg.com or visit www.rns.com.
END
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