Scirocco Energy plc has cancelled certain options held by directors and former directors under the shares in lieu of fees scheme and paid the money owed in cash.
OBLIGATION
From 2020 to 2022 the directors concerned deferred salaries to preserve cash in the business in exchange for new ordinary shares options, resulting in £447,000 savings.
At Scirocco’s 2023 general meeting shareholders rejected a resolution proposed to allot up to 70.7 million new ordinary shares to satisfy the exercise of options issued under the scheme.
The company today said it was now obliged to settle the amounts owed in cash rather than through the issue of the new ordinary shares.
The 70.7m issued options, representing approximately 8% of the total issued ordinary share capital of the company, have been cancelled and the corresponding deferred salaries of, in aggregate, £447,000 paid to the scheme participants.
Scirocco added that the action was a “no gain, no loss” position for the company and the scheme participants.
Given non-executive chairman Alastair Ferguson and outgoing chief executive Tom Reynolds are participants in the scheme, an independent board committee was formed comprising remaining board members non-executive director Matt Bower and independent NED Niall Roberts to consider terms of the cancellation.
The committee approved the terms of the cancellation on 1 February 2024.