At an Extraordinary General Meeting in the company held on 6 June 2021, it was resolved, subject to the completion of the listing of the company's shares on Nasdaq Stockholm, on an issue of warrants as a part of the implementation of a long-term incentive programme (“LTIP 2021/2024”) for the executive group management and certain key personnel, approximately 20 persons (the “Participants”). In total, LTIP 2021/2024 will comprise a maximum of 1,889,677 warrants, of which 1,777,211 warrants, as per the completion of the listing on 16 June 2021, have been purchased by Participants at fair market value of approximately MSEK 17.4 in total (as determined by the Black & Scholes valuation method). The number of warrants held per Participant will vary depending on the Participant’s position within the group. Remaining warrants are held by the subsidiary Revolutionrace Holding AB, for potential new recruits to acquire at fair market value.
The warrants can be exercised during the period 1 July 2024–31 December 2024. The strike price of the warrants is SEK 97.50, which corresponds to 130 per cent of the IPO offering price. The terms and conditions of the warrants include customary recalculation provisions relating to, among other things, dividends. The company has reserved the right to repurchase the warrants if, for example, the Participant wishes to sell the warrants to a third party or if the Participant’s employment is terminated. Assuming that all warrants in LTIP 2021/2024 are exercised for subscription of new shares, the share capital of the company will increase by SEK 18,896.77 corresponding to approximately 1.67 per cent of the company’s share capital after completion of the listing.
Since the warrants are transferred at fair market value, the company assesses that any potential costs for social charges associated with LTIP 2021/2024 will be limited. Other costs related to LTIP 2021/2024 will mainly consist of limited costs for the implementation and administration of the programme.