RNS Number : 9551U
Contango Holdings PLC
09 April 2021
 

Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources

 

9 April 2021

Contango Holdings Plc

('Contango' or the 'Company')

 

Issue of Performance Shares Options

 

Contango Holdings Plc, the London listed natural resource development company is pleased to announce it has now triggered its inaugural incentivisation package to remunerate directors and key senior employees and consultants ("Senior Team").

 

Since its formation in 2016, the Company has sought to prioritise cash into developing operations and value accretive transactions. This fiscal prudence with respect to cash has extended to board remuneration, which combined has always remained below £100,000 per annum in aggregate. Whilst this is substantially below market rate in comparison to its peers, the Company intends to continue this policy thereby maximising the potential for cash resources to advance assets and generate shareholder value. This philosophy has been embraced by other Senior Team members who have also accepted materially lower salaries on the basis that they would receive an equity incentive.

 

Given Contango's evolution since its IPO in June 2020, now with operations in two countries and targeting first production by the end of 2021, the Board believes it is the appropriate time to recognise the efforts and input by members of the Senior Team to date, whilst offering an incentive to deliver future milestones.

 

The Company will issue its Senior Team, with immediate effect, nil cost options that if exercised in full will total 21,390,000 ordinary shares of the Company ("Performance Shares Options"), representing approximately 7.3% of the enlarged fully diluted share capital. Any shares issued as result of the exercise of the Performance Share Options are subject to a hard lock-up to 9 April 2023, being the two-year anniversary of today's date, by which time the Company expects to have achieved a number of key milestones and value creation for its shareholders.

 

The Board believes the two-year lock up aligns the Senior Team with current shareholders and provides a focus on both growth and minimisation of any potential dilution of current share capital over the coming years.

 

The Board are due to receive 8,490,000 Performance Share Options, representing circa 40% of the total Performance Share Options package and circa 2.9% of the enlarged fully diluted share capital of the Company. The 8,490,000 Board options are to be allocated as follows:

 

Name of Director

Position

Total number of share options held under all schemes

Carl Esprey

Executive Director

3,900,000

Oliver Stansfield

Non-Executive Director

1,800,000

Philip Richards

Non-Executive Director

1,800,000

Roy Pitchford

Non-Executive Chairman

990,000

 

Carl Esprey, Chief Executive Officer of Contango Holdings, said: "Since inception Contango has sought to align the Board with its shareholders. This has been achieved not only by direct investment by Board members, but also low remuneration packages. This thinking has been shared more recently by newly appointed senior employees and consultants, some of whom have taken material reductions in salaries to join the Company and work on Contango's recently acquired assets in Zimbabwe and Mali. Accordingly, the majority of the options are being issued to those directly involved in the operational development of the assets, thereby providing a significant incentive to ensure value creation within the portfolio. We look forward to providing further updates on our portfolio of assets in due course."

 

**ENDS**

 

For further information, please visit www.contango-holdings-plc.co.uk or contact:

 

Contango Holdings plc

Chief Executive Officer

Carl Esprey

E: info@contango-holdings-plc.co.uk

 

 

Brandon Hill Capital Limited

Financial Adviser & Broker

Jonathan Evans

T: +44 (0)20 3463 5000

 

 

St Brides Partners Ltd

Financial PR & Investor Relations

Susie Geliher / Cosima Akerman

T: +44 (0)20 7236 1177

 

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCEKLBBFZLEBBF