Share Option Grant
London, UK, 29 January 2009 – Lombard Medical Technologies PLC (AIM: LMT), the specialist medical device company, announces that it granted 80.4 million share options to its Directors and employees on 28 January 2008. These share options may be exercised in whole or in part after three years provided that the Company’s share price attains the following targets.
Share price on 3rd anniversary of grant Percentage of options vesting
Equal or greater than 2 pence 50%
Equal or greater than 3 pence 80%
Equal or greater than 4 pence 90%
Equal or greater than 5 pence 100%
The exercise price of the options is 1.125 pence being the average of the closing prices over the three business days prior to grant in accordance with the rules of the Company’s share option scheme.
The Company regards share options as an important tool to retain and motivate management and staff over the next few years. The share options granted to Directors and employees prior to today do not fulfil this function as they currently have no realistic chance of being of value and as such the Company is announcing its intention to cancel those options.
Following the grant and cancellation of share options noted above the number of options in issue will be 82.8 million representing 10.5% of the share capital of the Company after the issue in February 2009 of 67 million shares pursuant to the conversion of the 2009 Convertible Loan Notes.
The number of options to be granted and cancelled for each of the Directors is shown in the table below.
Number of options cancelled | Number of options granted | Number of options held | |
1,029,114 | 5,600,000 | 5,600,000 | |
2,630,207 | 14,000,000 | 14,000,000 | |
2,006,779 | 10,000,000 | 10,000,000 | |
200,000 | 1,000,000 | 1,000,000 | |
Richard Johnston | 408,987 | 1,800,000 | 1,800,000 |
200,000 | 1,000,000 | 1,000,000 | |
1,315,232 | 6,000,000 | 6,000,000 | |
Michael Stevens | 471,022 | 2,000,000 | 2,000,000 |
Total | 8,261,341 | 41,400,000 | 41,400,000 |
- Ends -
Enquiries:
Lombard Medical Technologies PLC Tel: +44 (0) 1235 750 800
Simon Neathercoat, Non-executive Chairman
Brian Howlett, Chief Executive Officer
Tim Hall, Finance Director
Financial Dynamics Tel: +44 (0) 20 7831 3113
David Yates / Susan Quigley
Nomura Code Securities Limited Tel: +44 (0) 20 7776 1200
Juliet Thompson / Richard Potts
Notes to editors
About Lombard Medical
Lombard Medical Technologies PLC is a medical devices group developing stent grafts and other medical products for use in the treatment of vascular disease. The Company’s lead product, Aorfix™, is an endovascular stent graft for the treatment of abdominal aortic aneurysms (AAAs), a balloon-like enlargement of the aorta which, if untreated, may rupture and cause death. Approximately 1.7 million people have AAAs in the US where it is the 13th largest cause of death. The market for endovascular stent grafts for the treatment of AAA is currently worth over $600 million and is expected to grow to around a $1 billion by 2010. Aorfix™ is currently being commercialised in the EU, with a pivotal clinical trial ongoing in the USA.
The Company’s Polymer Coatings Division has developed a novel hydrophilic surface treatment to reduce friction on catheters called GlideMax™, which is available for licensing, and is using its polymer coating technology in a number of research collaborations developing novel products for the $5 billion drug-eluting stent market.
The Company headquartered in Oxfordshire, with operations in Yorkshire, Ayrshire and Boston, USA.
Further background on the Company can be found at www.lombardmedical.com.