LONDON and NEW YORK - Renalytix plc (LSE: RENX) (OTCQB: RNLXY), a company specializing in the commercialization of an FDA-approved and Medicare-reimbursed prognostic test for early-stage risk assessment of chronic kidney disease, has announced a restructuring of its share option plan for its senior executives. On Monday, the Board granted options for 28,914,285 ordinary shares to certain Persons Discharging Managerial Responsibilities (PDMRs), while simultaneously cancelling a number of historic options.
The newly granted options have an exercise price of £0.0996 per share, which was the closing mid-market price on the day before the grant, December 23, 2024. These options are set to vest under specific conditions, including reaching a share price target, achieving a certain revenue milestone by the fiscal year ending June 30, 2025, and a time-based vesting over 36 months. All options are contingent upon the PDMRs' continued employment with the company and include a six-month cliff from the vesting commencement date.
The Board has taken this step in response to the recent increase in issued share capital after the fundraising event on September 30, 2024, and the current share price, which led the Remuneration Committee to conclude that the existing option awards were no longer providing reasonable incentives. As a result, 2,811,080 existing options held by certain directors and PDMRs were cancelled.
The restructuring aims to realign the interests of the management with those of the shareholders and the company's current market valuation. The company's executive team, including CEO James McCullough and Executive Chairman Julian Baines, are among those receiving the new options, with specific vesting conditions tailored to their roles.
The cancellation and grant of options reflect Renalytix's commitment to maintaining a motivated leadership team, capable of steering the company towards its strategic goals. This announcement is based on a press release statement from Renalytix.
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