Veloxis Pharmaceuticals will establish a warrant program for its board members and its employees with the Veloxis Board of Directors exercising, in part, an authorization pursuant to the Articles of Association.
The warrant program is being created to show Veloxis’ commitment to its goals of attracting and keeping high-quality board members and employees. This will cement the creation of a long-term shareholder value.
The grant of warrants will form shared interests between board members, employees and the company’s shareholders for both the long and short term.
The total number of warrants awarded will be just over 2.8 million, which will give the right to subscription at $0.10 each. The fixed exercise price will be $1.09 per share.
The individual who possess the warrants will be able to exercise the warrants with 1/36 per month beginning Nov. 17, 2016. Warrants that have not been exercised by Nov. 17, 2023 will expire.
The warrants that will be issued are estimated to have a value of $1.25 million. The Black-Scholes model has the market value of the warrants calculated at 52 percent with no interest.