Share Option Grant
London, UK, 5 February 2010 – Lombard Medical Technologies PLC (AIM: LMT), the specialist medical device company, announces that it has today granted 149.4 million new share options to its Directors and employees. With the exception of those granted to the Company’s CEO, John Rush, these 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 to 2 pence | 80% |
| Between 2 pence and 3 pence | 80% + (20% x amount above 2 pence) |
| Equal or greater than 3 pence | 100% |
Any share options that do not vest on the 3rd anniversary of the date of grant may still vest in the event that a change of control of the Company is announced on or before 31 December 2014. The exact number of options that may vest in such circumstances will vary with the price announced for the change of control along the same lines as shown above (i.e. if a change of control is announced at a price of 3 pence or more, 100% of the options will vest).
Those share options issued to John Rush will vest upon achievement of the performance criteria set for his October 2009 grant as detailed in the Company’s announcement of 12 October 2009. These options contain the same change of control provisions as set out above in the event that the performance conditions are not satisfied on the due date.
The exercise price of the options is 1.042 pence being the average of the closing prices over the last three business days in accordance with the rules of the Company’s share option scheme.
In addition, in accordance with the rules of the Company’s share option scheme, the Company has amended the vesting performance criteria of the options granted in January 2009 to be in line with those granted on 5 February 2010. The terms of the October 2009 grant to John Rush have been amended to include the same change of control provisions as used for the options granted today.
Following the grant of share options noted above the number of options in issue capable of vesting will be 263.7 million, representing 12.1% of the share capital of the Company.
The number of options capable of vesting granted and held for each of the Directors is shown in the table below.
| Number of options capable of vesting | |
Subject to this grant | Total held following this grant | |
| Simon Neathercoat | 7,773,000 | 13,373,000 |
| John Rush | 53,335,609 | 86,987,800 |
| Brian Howlett | - | 14,000,000 |
| Tim Hall | 9,572,255 | 19,572,255 |
| Tim Cook | 2,591,000 | 3,591,000 |
| Richard Johnston | 2,591,000 | 4,391,000 |
| Craig Rennie | 2,591,000 | 3,591,000 |
| Martin Rothman | 2,591,000 | 8,591,000 |
| Michael Stevens | 2,591,000 | 4,591,000 |
| Total | 83,635,864 | 158,688,055 |
- Ends -
For further information:
Lombard Medical Technologies PLC
Simon Neathercoat, Non-executive Chairman
John Rush, Chief Executive Officer
Tim Hall, Finance Director Tel: 01235 750 800
Evolution Securities Limited
Barry Saint
Tim Redfern
Esther Lee Tel : 020 7071 4300
Financial Dynamics
Jonathan Birt
Susan Quigley Tel : 020 7831 3113
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 4.5 million people are living with AAA in the developed world and each year 600,000 new cases are diagnosed. The market for endovascular stent grafts for the treatment of AAA is currently worth approximately $900 million and is expected to grow to around $1.6 billion by 2015. Aorfix™ is currently being commercialised in the EU, with a pivotal clinical trial ongoing in the USA.
The Company is headquartered in Oxfordshire, with operations in Ayrshire and Boston, USA.
Further background on the Company can be found at www.lombardmedical.com.