GEO Exploration Limited (LSE:GEO) has approved a wide-ranging equity-based remuneration package for its board, opting to compensate executive and non-executive directors with shares rather than cash fees. The package includes the issue of new ordinary shares, the grant of 490 million new share options, and an extension to the expiry of warrants originally issued as part of a 2023 fundraising.
The measures materially increase directors’ exposure to the company’s equity while reducing near-term cash outflows. Following the changes, directors collectively hold around 14.4% of the enlarged share capital, rising to approximately 23.5% on a fully diluted basis. The options and share awards are subject to a mix of performance and time-based vesting conditions, designed to encourage long-term value creation and retain key management.
The warrant extensions, most of which are held by the chief executive and chief financial officer, together with the option grants, are classified as related-party transactions under AIM rules. These arrangements have been reviewed by the company’s nominated adviser and deemed fair and reasonable. The approach highlights GEO Exploration’s reliance on equity-linked incentives to preserve cash, support project development, and potentially generate future funding if warrants are exercised.
More about GEO Exploration Limited
GEO Exploration Limited is an AIM-listed resources company focused on early-stage exploration projects. Operating under the capital constraints typical of junior explorers, the group makes extensive use of equity-based instruments to remunerate and incentivise directors and staff, preserving cash for operational and strategic priorities while aligning management interests with those of shareholders.
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