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stefan.sundell@peopleperformance.se
We are very proud to have been assigned as advisor for design of the share-related incentive plans being established for Cinclus Pharma in connection to its IPO on Nasdaq Stockholm with the first trading day on 20 June.
Cinclus Pharm Cinclus Pharma is a Swedish clinical-stage pharma company developing small molecules for the treatment of gastric acid-related diseases The company’s lead candidate linaprazan glurate is being developed for the treatment of severe gastroesophageal reflux disease (GERD).
Plan structures
A new long-term incentive plan (“LTI plan”) in two parts for the IPO.
– A three-year performance share plan (”PSP 2024”) with an initial share investment, and employment requirement and share awards linked to performance conditions. The intention is to propose a roll out a new plan every year.
– A three-year share option plan (”SOP 2024”), one-off IPO plan, granted for free to the CEO and the US consultant.
▪ Both plans (including social security costs) are hedged by a Class C share issue, repurchase and reclassification to ordinary shares to be held by the Company during the term of the plans until allotment and option exercises (if any).
▪ Both plans have a cap being triggered if the share price at vesting exceeds 6x the IPO price.
▪ PSP 2024 – If the share price exceeds the cap level a proportional reduction of share allotted will be applied.
▪ SOP 2024 – If the share price exceeds the cap level a proportional reduction of share options vested will be applied (or alternatively, the exercise price is increased in order to maintain the maximum value of each share option.
