LeoVegas AB: the Board of directors of LeoVegas proposes a new incentive programme and decides on the cancellation of previously issued warrants

The board of directors of LeoVegas AB (publ), (“LeoVegas” or the “Company”) has decided to propose a new incentive programme for senior executives and employees through the issuance of 1,000,000 warrants to the subsidiary Gears of Leo AB and subsequent transfer to the participants. This incentive program is proposed to replace the previous program of 1 000 000 warrants, as decided at the annual general meeting on 17 may 2017. The board has also decided to cancel the warrants that were issued according to the decision of the annual general meeting. The board is publishing today a notice of extraordinary general meeting to be held on 23 August 2017.

New incentive program and cancellation of warrants

In the remuneration committee’s recommendation, the board of directors of the Company proposed that the extra general meeting decides to introduce a new incentive program through the issue of 1 000 000 warrants at Gears of Leo AB (“the Subsidiary“) with subsequent transfer to the ledandebefattningshavare, employees and other key employees of the Company and the group (the”Incentive plan II 2017/2020“).

The annual general meeting on 17 may 2017, if the issuance of a maximum of 1 000 000 warrants in order to introduce an incentive scheme for the group’s employees (“Incentive program In 2017/2020“). All warrants were subscribed for by the Subsidiary and registered with the Swedish companies registration office on 31 may 2017. Incentive program II 2017/2020 aims to replace the Incentive programs In 2017/2020.

The reason that the board of directors proposes a new program is that the trend in the Company’s share developed in a strong positive direction. The course rose from sek 38 on 12 april 2017 at the latest when the invitation to the annual general meeting was to 59,25 sek on 31 may 2017 when the last day for registration for participation in the Incentive program In 2017/2020 was, which affected the program’s mechanics was negative and led to the economic purpose of the program is entirely put out of the game, so the board is now proposing a new incentive program.

The board of directors has on 23 July 2017, the decided to cancel all the outstanding share warrants in the Incentive program In 2017/2020, which means that no further dilution in the number of shares of the Company will be in and the Incentive scheme II 2017/2020.

Summary of the Incentive plan II 2017/2020

  • The issuance of a maximum of 1 000 000 warrants, as a result of which the Company’s share capital may increase by a maximum of 12 000,000022 eur

  • The right to subscribe for warrants shall accrue to the Subsidiary with the right and obligation, on one or several occasions, to reassign the warrants to senior executives, employees and key personnel, who are or become employees of the Company or the group, at a price that is not less than the option’s market value according to Black & Scholes valuation model and, in general, on the same conditions as in the issue.

  • The warrants shall be subscribed for by the Subsidiary to the option’s market value at the teckningstillfället in accordance with the Black & Scholes valuation model.

  • Each subscription warrant entitles to subscription of one (1) new share in the Company during the period from June 1, 2020 June 15, 2020.

  • The subscription price shall be set at an amount equivalent to 170 percent of the average for each trading day during the period from 9 August 2017 22 August 2017 the average of the highest and lowest transaction price according to Nasdaq First North Premier official price list for shares in the Company (103,25 kronor based on a preliminary calculation).

  • The transfer of warrants to employees shall be made at a price corresponding to the option’s market value the day before the date of transfer, which means that there should not arise any social contributions for the group in connection with the transfer of the warrants.

  • Teckningsoptionens market value is, according to a preliminary valuation based on the market value of the underlying stock on the 60,75 sek 3,01 sek per option, on the assumption of a price of 103,25 per share. The Black & Scholes valuation model has been used for the valuation by assuming a risk free interest rate of -0,45%, and a volatility of 31% and with regard to the expected dividend and other distributions to shareholders.

  • Upon full exercise of the warrants, at a subscription price of 103,25 kronor, the Company will be added to the a proceeds of the issue of 103 250 000 sek.

  • The maximum dilution effect of Incentive program II 2017/2020 is expected to amount to no more than approximately 0.99% of the total number of shares and votes in the Company (calculated on the basis of the number of existing shares in the Company without taking into account the outstanding warrants), assuming full subscription and exercise of all offered warrants and that the warrants, under the previous Incentive program In the 2017/2020 will be cancelled. The dilutive effect of the Incentive scheme II 2017/2020 with respect to all outstanding warrants in the Company are estimated to amount to approximately 2,92% of the total number of shares and votes in the Company, assuming full subscription and exercise of all warrants and options under the previous schemes In 2017/2020 will be cancelled.

The extraordinary general meeting

Incentive program II 2017/2020 requires a decision by the extraordinary general meeting and a full description of the program will be available in the notice convening the meeting. The extraordinary general meeting is scheduled for August 23, 2017 and is to be held in Baker & McKenzie advokatbyrås premises on Vasagatan 7 in Stockholm. The summons to the meeting published today by press release, and is expected to be published on 26 July 2017 in Post – och Inrikes Tidningar) and is available from today’s date on the Company’s website www.leovegasgroup.com. That the notice has been advertised in Svenska Dagbladet on 26 July 2017.

This information is such information that LeoVegas AB is obliged to publish under the EU marknadsmissbruksförordning. The information was submitted, through the following contacts in the government, for publication on 24 July 2017 there is a 08:00 CET.

For further information, please contact:

Gustaf Hagman, Group CEO and co-founder: +46 70-880 55 22, gustaf.hagman@leovegas.com

Viktor Fritzén, Group CFO: +46 73-612 26 67, viktor.fritzen@leovegas.com

Philip Doftvik, Head of Investor Relations: +46 73 512 07 20, philip.doftvik@leovegas.com

If mobilspelsbolaget LeoVegas

LeoVegas vision is to create the top gaming experience and be the number one in mobile games. The business is characterized by award-winning innovation and strong growth. LeoVegas technology development takes place in Sweden, while the operational business is based in Malta. The Swedish parent company LeoVegas AB (publ) invests in companies that offer games via mobile devices and computers as well as companies that are developing related technologies. LeoVegas has received considerable attention internationally and has won numerous awards.

Among other things, “the Nordic Operator of the year”, “Mobile Marketing Campaign of the year”, “Innovation in Mobile and Tablet of the year” at the international the EGR Awards. LeoVegas is developed the “Mobile-First” and is at the forefront with the latest technology on the market for mobile games. With a base in an outstanding gaming experience, long-term customer relationships and the establishment of a strong brand, the Company with innovative, effective and data-driven marketing has attracted a continuously growing customer base. Mobilspelsbolaget LeoVegas has since the start shown strong growth each quarter. The company’s share is listed on First North Premier and Avanza Bank AB is the Company’s Certified Adviser. More about LeoVegas on

www.leovegasgroup.com

or

www.leovegas.com

.

The board of directors of LeoVegas proposes new incentive program

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