Award of Long Term Incentive Plan Options
BrandShield Systems Plc
19 April 2021
BrandShield Systems plc
("BrandShield", or the "Company")
Award of Long Term Incentive Plan Options
BrandShield Systems plc (AIM: BRSD), a leading provider of cybersecurity solutions from brand protection to online threat hunting, announces that on 15 April 2021 it awarded share options as part of a Long Term Incentive Plan over ordinary shares of £0.01 to two Executive Directors of the Company and a senior manager responsible for revenue generation (the "LTIP Options"). The LTIP Options are outlined in the table below.
The Board is acutely aware of the requirement to align directors' incentives with value delivered to the Company's shareholders. The LTIP awards, as outlined in the Company's Admission Document dated 11 November 2020, incentivise the senior executives to deliver value through the growth of Annual Recurring Revenue ("ARR") within clear milestone dates. As well as being targeted at the Chief Executive Officer and Chief Technical Officer, this LTIP has been extended to include the Chief Revenue Officer of the Company, who the Board views as being critical to the delivery of recent and continued ARR growth.
Pursuant to the resolutions approved at a General Meeting of the Company held on 27 November 2020, the Board has been authorised to grant share incentives to its directors and senior management with the approval of its remuneration committee.
The Company advises that it has issued a total of 13,991,890 LTIP Options to senior management. The LTIP Options have been granted with an exercise price of £0.01, and are subject to the following vesting conditions, which apply to each beneficiary:
· 50% (6,995,945) of the options will vest should the Company have achieved an ARR figure of US$7,000,000 (the "First ARR target") by 30 June 2022 (the "First Milestone Options").
· A linear sliding scale has been established such that a percentage of the First Milestone Options will vest on the Company achieving over 70% of the First ARR target. Therefore 100% of the options will vest on achievement of the First ARR target down to 62.5% of the options vesting on achievement of 70% of the First ARR target.
· The remaining 50% of the LTIP Options will vest should the Company have achieved an ARR figure of US$13,000,000 (the "Second ARR target") by 30 June 2023 (the "Second Milestone Options").
· The same linear sliding scale applies to the Second Milestone Options.
· Should the Company hit 75% of the Second ARR target, any unvested options from the First Milestone Options will automatically vest.
· Limits have been placed on the Company remaining within a certain percentage of budgeted costs during the qualification period.
· The LTIP Options will have a 10 year life from grant and cannot be exercised within the first 3 years of the date of grant.
· An acceleration clause has been established such that the LTIP Options will vest under certain scenarios including change of control of the Company.
The overall issue of LTIP Options is outlined below:
|
Name of Director / PDMR
|
Number of Options granted
|
Exercise Price |
Vesting Conditions |
End of Exercise Period |
|
Yoav Keren (CEO) |
5,854,580 |
£0.01 |
50% on achievement of first ARR target by 30 June 2022. Sliding scale below that to 70% of target achieved. 50% on achievement of second ARR target by 30 June 2023 with sliding scale below to 70% of target. Catch up on first 50% should 75% of second target be achieved.
|
10 years from date of issue. No exercise within 3 years of issue. |
|
Yuval Zantkeren (CTO) |
5,854,580 |
£0.01 |
50% on achievement of first ARR target by 30 June 2022. Sliding scale below that to 70% of target achieved. 50% on achievement of second ARR target by 30 June 2023 with sliding scale below to 70% of target. Catch up on first 50% should 75% of second target be achieved.
|
10 years from date of issue. No exercise within 3 years of issue. |
|
Itai Galmor (Chief Revenue Officer) |
2,282,730 |
£0.01 |
50% on achievement of first ARR target by 30 June 2022. Sliding scale below that to 70% of target achieved. 50% on achievement of second ARR target by 30 June 2023 with sliding scale below to 70% of target. Catch up on first 50% should 75% of second target be achieved.
|
10 years from date of issue. No exercise within 3 years of issue. |
The Chairman of BrandShield, Azriel Moscovici, said :
"The setting of these aggressive targets for Annual Recurring Revenue figures sends a strong signal about the growth rates that the Board and the executive team in particular believe can be achieved over the next 2 years. 2021 has seen a strong start to signing up new clients to the BrandShield services and I'm delighted that the incentivisation package for the key revenue growth drivers are now aligned completely with the interests of our shareholders."
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (eu) 596/2014
-Ends-
|
BrandShield Systems plc Yoav Keren, CEO
|
+44 (0)20 3143 8300 |
|
Spark Advisory Partners Limited (Nominated Adviser) Neil Baldwin / Andrew Emmott / James Keeshan
|
+44 (0)20 3368 3554 |
|
Shore Capital (Joint Broker) Toby Gibbs / James Thomas / Sarah Mather (Corporate Advisory) Henry Willcocks (Corporate Broking)
|
+44 (0)20 7408 4090 |
|
Tennyson Securities (Joint Broker) Peter Krens
|
+44 (0)20 7186 9033 |
About BrandShield
BrandShield is a provider of cybersecurity solutions from brand protection to online threat hunting. BrandShield detects online threats and takes them down. The Company's client base is a growing list of organisations including Fortune 500 and FTSE100 companies. By utilising AI and big-data analysis, BrandShield monitors, detects, and removes online threats facing companies. These threats include social phishing, executive impersonation, fraud, brand abuse, and counterfeits. For more information, visit www.brandshield.com
|
1 |
Details of the person discharging managerial responsibilities / person closely associated |
|||||
|
a) |
Name |
Yoav Keren |
||||
|
2 |
Reason for notification |
|||||
|
a) |
Position / status |
Director |
||||
|
b) |
I nitial notification /Amendment |
Initial |
||||
|
3 |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
|||||
|
a) |
Name |
BrandShield Systems Plc |
||||
|
b) |
LEI |
213800K5AXTQDWB6BP80 |
||||
|
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 I d e ntification code |
Ordinary shares of 1p (£0.01) each in the capital of BrandShield Systems Plc ISIN GB00BM97CN29
|
||||
|
|
Nature of the transaction |
Grant of options |
||||
|
|
Price(s) and volumes(s) |
|
||||
|
d) |
Aggregated information - Aggregated volume - Aggregated price |
5,854,580 £0.01 |
||||
|
e) |
Date of the transaction |
15 April 2021 |
||||
|
f) |
Place of the transaction |
Outside a trading venue |
||||
|
1 |
Details of the person discharging managerial responsibilities / person closely associated |
|||||
|
a) |
Name |
Yuval Zentkeren |
||||
|
2 |
Reason for notification |
|||||
|
a) |
Position / status |
Director |
||||
|
b) |
I nitial notification /Amendment |
Initial |
||||
|
3 |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
|||||
|
a) |
Name |
BrandShield Systems Plc |
||||
|
b) |
LEI |
213800K5AXTQDWB6BP80 |
||||
|
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 I d e ntification code |
Ordinary shares of 1p (£0.01) each in the capital of BrandShield Systems Plc ISIN GB00BM97CN29
|
||||
|
|
Nature of the transaction |
Grant of options |
||||
|
|
Price(s) and volumes(s) |
|
||||
|
d) |
Aggregated information - Aggregated volume - Aggregated price |
5,854,580 £0.01 |
||||
|
e) |
Date of the transaction |
15 April 2021 |
||||
|
f) |
Place of the transaction |
Outside a trading venue |
||||
|
1 |
Details of the person discharging managerial responsibilities / person closely associated |
|||||
|
a) |
Name |
Itai Galmor |
||||
|
2 |
Reason for notification |
|||||
|
a) |
Position / status |
PDMR |
||||
|
b) |
I nitial notification /Amendment |
Initial |
||||
|
3 |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
|||||
|
a) |
Name |
BrandShield Systems Plc |
||||
|
b) |
LEI |
213800K5AXTQDWB6BP80 |
||||
|
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 I d e ntification code |
Ordinary shares of 1p (£0.01) each in the capital of BrandShield Systems Plc ISIN GB00BM97CN29
|
||||
|
|
Nature of the transaction |
Grant of options |
||||
|
|
Price(s) and volumes(s) |
|
||||
|
d) |
Aggregated information - Aggregated volume - Aggregated price |
2,282,730 £0.01 |
||||
|
e) |
Date of the transaction |
15 April 2021 |
||||
|
f) |
Place of the transaction |
Outside a trading venue |
||||
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