REG - LungLife AI, INC - Options Cancellation and Re-issuance

LungLife AIAnnouncement

04/10/2024 07:00

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RNS Number : 8723G  LungLife AI, INC  04 October 2024

LungLife AI, Inc.

(the "Company" or "LungLife")

 

Options Cancellation and Re-issuance

 

LungLife AI (AIM: LLAI), a developer of clinical diagnostic solutions for lung
cancer, announces that the Remuneration Committee has decided to make
amendments to the options issued to the Executive Directors at IPO in July
2021, and to those options issued to all current employees in 2021 or upon
their appointment.

 

Background and Rationale

 

Under the terms of the current 2021 Omnibus Long Term Incentive Plan, the
following options were issued to the Executive Directors at IPO in July 2021,
and no further options have been issued to the Executive Directors since this
date:

 Director        No. share options  Exercise price  Option period
 Paul Pagano     769,707            £1.76           8 July 2021 - 8 July 2031
 David Anderson  386,703            £1.76           8 July 2021 - 8 July 2031

 

In addition, 41,750 options at an exercise price of £1.925, and 35,000
options at exercise prices of between £1.125 and £1.90 have been issued to
all current employees (together the "Options").

The Remuneration Committee and independent Board members continue to believe
that the Executive Directors are best aligned with shareholders via Executive
long-term incentivisation goals.  A key goal of the Company is to ensure it
has long term incentivisation in place to meaningfully retain staff and which
aligns with shareholder expectations.

Due to the current share price of the Company, the Options noted above are no
longer considered to incentivise the Executive Directors. This, in addition to
the salary and bonus reductions taken by the Executive Management at the time
of the fundraising in March 2024, means that the Remuneration Committee
consider that the executive directors are no longer appropriately
incentivised.

The Chair of the Remuneration Committee, Andrew Boteler, has also engaged with
certain shareholders and taken their input before arriving at this decision.

The Amendments

All of the Options noted above will be cancelled and then re-issued
immediately at the current prevailing share price and then vest in accordance
with the existing scheme rules and contracts of employment as set out to
shareholders at the time of our IPO.  For Paul Pagano vesting will be as
follows: 384,924 on re-issue; 192,391 on the date that is 12 months following
re-issue; and thereafter, 16,032 on the last day of each full subsequent
calendar month.  For all other participants 25% of the options will vest on
the 12-month anniversary of the vesting commencement date and an additional
1/48th of the total number of shares after each subsequent calendar month for
a further 3 years.

All other rules associated with the 2021 Omnibus Long Term Incentive Plan,
including change of control clauses, would remain in place.

Following the re-issue of the Options, the Company will have 2,209,726 options
outstanding over a total of 30,658,603 existing Ordinary Shares.

 

 

For further information please contact:

 

 LungLife AI, Inc.                                   www.lunglifeai.com (https://www.lunglifeai.com/)
 Paul Pagano, CEO                                    via investors@lunglifeai.com
 David Anderson, CFO

 Investec Bank plc (Nominated Adviser & Broker)      Tel: +44 (0)20 7597 5970
 Virginia Bull / Lydia Zychowska/ Sara Wallace

 Goodbody (Joint Broker)                             Tel: +44 (0) 20 3841 6202
 Tom Nicholson / Cameron Duncan

 

 

About LungLife

LungLife AI is a developer of clinical diagnostic solutions designed to make a
significant impact in the early detection of lung cancer, the deadliest cancer
globally. Using a minimally invasive blood draw, the Company's LungLB® test
is designed to deliver additional information to clinicians who are evaluating
indeterminate lung nodules. For more information visit www.lunglifeai.com
(http://www.lunglifeai.com)

 

Our Purpose is to be a driving force in the early detection to lung cancer.
And our Vision is to invert the 20:80 ratio such that in years to come at
least 80% of lung cancer is detected early.

 

 

 

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