REG - Longboat Energy PLC - Founders Incentive Plan Awards

Longboat EnergyAnnouncement

06/07/2020 07:00

RNS Number : 0970S
  
Longboat Energy PLC
  
06 July 2020
  
 

6 July 2020
                                                                                   Longboat Energy plc                                               
("Longboat Energy", "the Company" or "Longboat")
 
Notification of Transactions by Persons Discharging Managerial Responsibilities ("PDMRs")
 
Founders Incentive Plan Awards
 
Longboat Energy, established by the former management team of Faroe Petroleum plc to build a significant North Sea-focused E&P business announces the conditional awards made under the Company's Founders Incentive Plan (the "Plan") to the PDMRs of the Company as listed below.  
 
The Plan
 
The Company has put in place an incentive arrangement for the founders of the Company designed to incentivise participants to deliver exceptional returns for shareholders over a five-year period (the "Performance Period").  Under the Plan, participants are eligible to receive 15% of the growth in returns of the Company from the date of Admission should a hurdle of doubling of the total shareholder return be met (the "Initial Award").
 
For further capital raises that occur during the Performance Period, additional tranches under the Plan will be created with their own threshold values which will be calculated with reference to the growth rates required for the Initial Award (listed below) as well as the time remaining to each of the measurement dates. Additional tranches will follow the same timetable as the initial award (i.e. performance will be measured on the same dates).
 
Not more than 10% of the Company's issued ordinary share capital may be issued under the Plan. 
 
Conditional Awards
 
The following conditional awards have been made to the Company's founders under the Plan (the "Awards") which are expressed as a percentage of the total maximum potential award, being 10% of the Company's issued share capital. Subject to the performance conditions set out below being met, the Awards will be converted into nil cost options over ordinary shares of 10p each in the share capital Company ("Nil Cost options") on each measurement date as set out below. 
 



Founder 


Percentage entitlement of Initial Award pool


 Maximum percentage entitlement of growth in value from IPO 


Maximum percentage of issued share capital








%


 % 








Helge Hammer


23.5000%


3.525%


2.3500%




Graham Stewart


19.7500%


2.963%


1.9750%




Jonathan Cooper


19.1250%


2.869%


1.9125%




Julian Riddick


18.5000%


2.775%


1.8500%



 
A further 19.125% entitlement of the Initial Award with a maximum 2.869% entitlement of growth in value from the IPO, to be converted up to a maximum of 1.9125% of the Company's issued share capital, has been made to trusts established by a founder who is not a PDMR.
 
Performance Conditions
 
The share price at the date of Admission of the Company to AIM on 28 November 2019 (the "Commencement Date") of £1.00 (the "Initial Price") will be used to measure the level of return at each measurement date. Testing of the level of return achieved will be at the end of years three, four and five from the Commencement Date (the "Measurement Dates"). At each Measurement Date the value of the award will be driven by the return generated above the Initial Price (the "Threshold Value"):
 



Measurement Date


Threshold Total Shareholder Return


Measurement Total Shareholder Return 




First Measurement Date 
28 November 2022


25.99% compound annual growth from the Initial Price as at the First Measurement Date.


Average of the market value for the Company's shares for the 30-day period ending on the First Measurement Date plus the dividends paid per share from the Commencement Date to the First Measurement Date.




Second Measurement Date 
28 November 2023


The higher of:
·    18.92% compound annual growth from the Initial Price as at the Second Measurement Date; and
 
·    the highest previous measurement total shareholder return which resulted in Conversion.


Average of the market value for the Company's shares for the 30-day period ending on the Second Measurement Date plus the dividends paid per share from the Commencement date to the Second Measurement Date.




Third Measurement Date 
28 November 2024


The higher of:
·    14.87% compound annual growth from the Initial Price as at the Third Measurement Date; and
 
·    the highest previous measurement total shareholder return which resulted in Conversion.
 


Average of the market value for the Company's shares for the 30-day period ending on the Third Measurement Date plus the dividends paid per Plan Share from the Commencement Date to the Third Measurement Date.



 
If at Measurement Dates three and/or four the Threshold Value has been reached then Nil Cost Options will be awarded of which half will vest and can be exercised immediately. The remaining half will be deferred until the Measurement Date at year five. All Nil Cost Options awarded in respect of the Measurement Date at year five will vest immediately.
 
Awards of all Nil Cost Options will be made after approval by the Remuneration Committee taking into account the overall performance of the Company during the Performance Period.
 
Notification of Deal Forms of each PDMR can be found below.
 



1.


Details of the person discharging managerial responsibilities/persons closely associated




a)


Name


Helge Hammer




2.


Reason for notification




a)


Position/Status


Chief Executive Officer




b)


Initial notification/amendment


Initial notification




3.


Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor




a)


Name


Longboat Energy plc




b)


LEI


213800D1D587TB36ST68




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 of the financial instrument, type of instrument and identification code


Ordinary Shares of £0.10 each in the capital of Longboat Energy plc ISIN: GB00BKFW2482




b)


Nature of transaction


Grant of options under the Longboat Energy plc Founders Incentive Plan




c)


Price(s) and volume(s)





Price(s)


Volume(s)




Nil payable on grant


Such number of shares as equals 3.525% of the value created above a starting share price of £1.00 if a hurdle price of £2.00 is met up to a maximum of 235,000 shares








d)


Aggregated Information


n/a




e)


Date of transaction


3 July 2020




f)


Place of transaction


London Stock Exchange (XLON)



 



1.


Details of the person discharging managerial responsibilities/persons closely associated




a)


Name


Graham Stewart




2.


Reason for notification




a)


Position/Status


Non-Executive Chairman




b)


Initial notification/amendment


Initial notification




3.


Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor




a)


Name


Longboat Energy plc




b)


LEI


213800D1D587TB36ST68




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 of the financial instrument, type of instrument and identification code


Ordinary Shares of £0.10 each in the capital of Longboat Energy plc ISIN: GB00BKFW2482




b)


Nature of transaction


Grant of options under the Longboat Energy plc Founders Incentive Plan




c)


Price(s) and volume(s)





Price(s)


Volume(s)




Nil payable on grant


Such number of shares as equals 2.963% of the value created above a starting share price of £1.00 if a hurdle price of £2.00 is met up to a maximum of 197,500 shares








d)


Aggregated Information


n/a




e)


Date of transaction


3 July 2020




f)


Place of transaction


London Stock Exchange (XLON)



 



1.


Details of the person discharging managerial responsibilities/persons closely associated




a)


Name


Jonathan Cooper




2.


Reason for notification




a)


Position/Status


Chief Financial Officer




b)


Initial notification/amendment


Initial notification




3.


Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor




a)


Name


Longboat Energy plc




b)


LEI


213800D1D587TB36ST68




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 of the financial instrument, type of instrument and identification code


Ordinary Shares of £0.10 each in the capital of Longboat Energy plc ISIN: GB00BKFW2482




b)


Nature of transaction


Grant of options under the Longboat Energy plc Founders Incentive Plan




c)


Price(s) and volume(s)





Price(s)


Volume(s)




Nil payable on grant


Such number of shares as equals 2.869% of the value created above a starting share price of £1.00 if a hurdle price of £2.00 is met up to a maximum of 191,250 shares








d)


Aggregated Information


n/a




e)


Date of transaction


3 July 2020




f)


Place of transaction


London Stock Exchange (XLON)



 



1.


Details of the person discharging managerial responsibilities/persons closely associated




a)


Name


Julian Riddick




2.


Reason for notification




a)


Position/Status


Company Secretary




b)


Initial notification/amendment


Initial notification




3.


Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor




a)


Name


Longboat Energy plc




b)


LEI


213800D1D587TB36ST68




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 of the financial instrument, type of instrument and identification code


Ordinary Shares of £0.10 each in the capital of Longboat Energy plc ISIN: GB00BKFW2482




b)


Nature of transaction


Grant of options under the Longboat Energy plc Founders Incentive Plan




c)


Price(s) and volume(s)





Price(s)


Volume(s)




Nil payable on grant


Such number of shares as equals 2.775% of the value created above a starting share price of £1.00 if a hurdle price of £2.00 is met up to a maximum of 185,000 shares.








d)


Aggregated Information


n/a




e)


Date of transaction


3 July 2020




f)


Place of transaction


London Stock Exchange (XLON)



 



 
Enquiries:








Longboat Energy


via FTI




Helge Hammer, Chief Executive Officer








Jon Cooper, Chief Financial Officer


















Stifel (Nomad)


Tel: +44 20 7710 7600




Callum Stewart
Jason Grossman
Ashton Clanfield


















FTI Consulting (PR Adviser)


Tel: +44 20 3727 1000




Ben Brewerton
Sara Powell


longboatenergy@fticonsulting.com
 
 



 


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
 
 
MSCEAFXKEEPEEEA