Restricted share units ... there is no exercice price ?!?Regarding the options and restricted share units (RSU) that Nickel 28 managers grant themselves, fortunately a law prevents exceeding 10% of the shares issued and in circulation!
As of October 31, 2023, the portrait looks like this:
- 1,970,000 options maturing in December 2026 (at an average exercise price of $0.81)
- 6,256,663 restricted share units (RSU)
So, 8,226,663 out of 92,377,198 shares outstanding (or 8.9% of the total).
Unless I'm mistaken (and correct me if I'm wrong...and I hope I'm wrong), unlike stock options which are paid based on the difference between the market price and the exercise price of such options, there is no exercise price associated with the RSUs (this exercise price is therefore assimilated to zero ?!?) and they can be settled entirely in cash or in shares.
Technically, in total, up to 9,237,720 RSUs could therefore be issued and replaced at the rate of a third each year (their vested period), or 3,079,240 RSUs per year. At the current price of $0.83, this represents a cost of $2.5 million each year.
Small shareholders therefore have an interest in the share price being as low as possible to avoid being robbed by management! In the circular published on SEDAR on 2021-08-24 and dated 2021-09-16 (date of approval of the OMNIBUS LONG-TERM INCENTIVE PLAN), we can read this on page 52 (page “A-14”): ARTICLE 4 —SHARE UNITS
Section 4.1 Nature of Share Units.
A Share Unit is an Award entitling the recipient to acquire Shares, at such purchase price (which may be zero) as determined by the Board, subject to such restrictions and conditions as the Board may determine at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives.
Rf. :
https://www.sedarplus.ca/csa-party/viewInstance/resource.html?node=W3932&drmKey=f880707577c5b1ad&drr=ssf1dc85c447ffe2d9dc0532754da86ae9e6bb15889099399b52a7ae76875f3b35738d2302d190186281b650425f6d11c7ux&id=0c11f8b7998bcd96c1ddac163588b234a6fa11aad0ba6c0f