Grant of share-based incentive awards

RNS Number : 0277G

Velocys PLC

27 February 2015

 

27^th February 2014

Velocys plc

("Velocys" or "the Company")

Grant of share-based incentive awards

Velocys plc (VLS.L), announces that on 26 February 2015 it issued share-based awards to Executive Directors as part of the Company's Long Term Incentive Plan ("LTIP").

The new LTIP was put in place following an extensive review with a leading remuneration agency and direct consultation with the Company's largest shareholders, representing in aggregate close to 70% of the issued share capital of Velocys.

In the case of the CFO and COO, the LTIP awards are annual and this issuance represents awards for both 2014 and 2015. These awards can vest after three years, subject to meeting performance targets based on compound annual Company growth over the three year periods, with a minimum vesting amount of 23% of the total and the remainder vesting only if a certain threshold performance is reached rising to the full amount for stretch performance. The LTIP awards are either awarded as nominal price options in the case of a UK based executive, or as a restricted stock unit for executives based in the USA.

In the case of the CEO, the LTIP award comprises a single award to cover the five year period 2014 to 2018 inclusive, vesting from January 2019. The number of shares that vest will be subject to achievement of performance targets based on the compound annual growth of the Company over this period. The minimum vesting amount is 30%.

The awards are as follows:

(i) Susan Robertson, Chief Financial Officer, was granted 451,389 options over ordinary shares of £0.01 each in the Company ("Ordinary Shares") at an exercise price of 1 pence per share, representing in total approximately 0.3% of the current issued Ordinary Shares. Following this grant, Susan holds 304,874 Ordinary Shares (representing approximately 0.2% of the current issued Ordinary Shares) and has options over 2,907,527 Ordinary Shares (equivalent to  approximately 2.0% of the current issued Ordinary Shares) and;

(ii) Paul Schubert, Chief Operating Officer, was granted an award of restricted stock units which allows for vesting of up to 344,811 Ordinary Shares,representing in total approximately 0.2% of the current issued Ordinary Shares. In addition to this grant, Paul holds options over 1,264,565 Ordinary Shares. His options and these restricted stock units in total represent an equivalent of 1.1% of the current issued Ordinary Shares and;

(iii) Roy Lipski, Chief Executive Officer, was granted an award of restricted stock units which allows for vesting of up to 7,000,000 Ordinary Shares, representing approximately 4.9% of the current issued Ordinary Shares. Following this grant, Roy holds 2,417,098 Ordinary Shares (representing approximately 1.7% of the current issued Ordinary Shares) and has options over 5,279,085 Ordinary Shares. His options and these new restricted stock units in total are equivalent to 8.7% of the current issued Ordinary Shares of the Company.

In accordance with AIM Rule 13, these grants are classified as a related party transaction for the purposes of the AIM Rules for Companies. Accordingly, the independent Directors (being all of the Directors other than Roy Lipski, Susan Robertson and Paul Schubert), having consulted with Numis Securities (in its capacity as the Company's nominated adviser), confirm that they consider that the terms of the grant are fair and reasonable insofar as shareholders are concerned.

- Ends -

For further information, please contact:

Velocys Roy Lipski, CEO Susan Robertson, CFO	[phone] [phone]
Numis Securities (Nomad and Broker) Alex Ham - Corporate Broking Stuart Skinner / Jamie Lillywhite - Nominated Adviser	[phone]
Camarco (financial communications & PR) Billy Clegg / Georgia Mann	[phone]

Notes to editors

Velocys is the company at the forefront of smaller scale gas-to-liquids (GTL) that turns natural gas into premium liquid products such as diesel and jet fuel. Smaller scale GTL adds value to shale gas and makes stranded or flared gas economic - an untapped market of up to 25 million barrels per day.

Velocys technology, protected by over 900 patents, is specifically designed for smaller scales, combining super-active catalysts with intensified reactor systems. The Company's standardised modular plants are easier to ship and faster to install, at lower risk, even in the most remote or challenging locations. Together with world-class partners, Velocys works flexibly to unlock gas resources of 15,000 to 150,000 mmbtu per day, allowing more companies to take advantage of more opportunities.

Velocys plc is listed on the AIM market of the London Stock Exchange (LSE: VLS). The Company is well capitalised with some $100 million of cash, and has a multi-disciplinary staff of over 100 operating from its commercial centre in Houston, Texas, USA and technical facilities near Oxford, UK and Columbus, Ohio, USA. Its first commercial plant, funded by Waste Management (NYSE: WM), NRG Energy (NYSE: NRG) and Ventech Engineers, is on track to enter full production by Q2 2016.

www.velocys.com

Think Smaller^™. Velocys is changing the way fuels are made.

 

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