Using Shareholder-Approved Plan to Incentivize and Retain
TORONTO, February 25, 2020 – Microbix Biosystems Inc. (TSX: MBX, Microbix®), a life sciences innovator making critical ingredients that enable the production of clinical diagnostics and creating medical devices that help ensure test accuracy, announces the issuance of stock options under its shareholder-approved 2018 stock option plan (the “Stock Option Plan”), as part of its compensation programs to incentivize and retain its board of directors, executives, and managers.
Details of the Option Issuance
In consultation with the CEO and CFO, the Microbix Board of Directors has approved the issuance of 2,200,000 options in accordance with the terms of the Stock Option Plan. The options are exercisable at a price of $0.215 per share, as determined by the closing price of the TSX on 24 February, 2020. Each option will vest and be exercisable after three (3) years and have a total life of five (5) years. The stock option grants form part of the total remuneration package for the recipients and are subject to TSX approval.
Management believes that stock options are an important tool to incentivize and retain senior personnel, particularly for smaller, publicly-listed companies. In February 2019, Microbix announced its intention to broadly use its stock option plan once per year – following the issuance of its Q1 results.
The options now issued are being allocated across 24 individuals that comprise the more senior tiers of Microbix’s 75 employees, inclusive of its independent directors. The mean award per individual is 91,667, with a standard deviation of 56,002. The quarterly expense incurred as a result of this option award is estimated to be $23,000, and will represent approximately 1% of total company compensation costs.
About the Microbix Stock Option Plan
Details of the Microbix Stock Option Plan are available on the corporate website (www.microbix.com), via SEDAR (www.sedar.com), and are provided as an appendix to the current management information circular. The Stock Option Plan is a “rolling” plan that permits the issuance of options representing up to 10% of Microbix’s issued and outstanding common shares. Prior to the current issuance, a total of 7,693,000 options had been issued under the plan, with an average exercise price of $0.35 and remaining life of 2.6 years. Following the current issuance, a total of 9,893,000 options will be outstanding, comprising 91% of the current plan availability. The plan is administered under the supervision of the board of Microbix or the human resources, compensation and governance committee of the board.
About Microbix Biosystems Inc.
Microbix develops proprietary biological and technology solutions for human health and well-being, with sales usually exceeding $1 million per month and approximately 80 skilled employees. It makes a wide range of critical biological materials for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs™) that support clinical lab proficiency testing, enable assay development and validation, or help ensure quality control of clinical diagnostic tests. Microbix antigens and QAPs are sold to many customers worldwide, at present primarily to multinational diagnostics companies and laboratory accreditation organizations.
Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably Kinlytic® urokinase, a biologic thrombolytic drug used to treat blood clots.
Microbix is a publicly-traded company, listed on the Toronto Stock Exchange and headquartered in Mississauga, Ontario, Canada.
This news release includes “forward-looking information,” as such term is defined in applicable securities laws. Forward-looking information includes, without limitation, discussion of the 2018 Stock Option Plan or opinions relating to the plan, financial results or the outlook for the business, risks associated with its financial results and stability, its biologicals business, development projects such as those referenced herein, sales to foreign jurisdictions, engineering and construction, production (including control over costs, quality, quantity and timeliness of delivery), foreign currency and exchange rates, maintaining adequate working capital and raising further capital on acceptable terms or at all, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management’s current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company’s judgement as of the date of this new release, and the Company is under no obligation to update or alter any forward-looking information.
Please visit www.microbix.com or www.sedar.com for recent Microbix filings.
For further information, please contact:
|Cameron Groome, CEO
|Jim Currie, CFO
|Deborah Honig, Investor Relations
Adelaide Capital Markets
(647) 203-8793 firstname.lastname@example.org