KappAhl currently has no share-based incentive program. Between 2012 and 2015 the company ran a three-year incentive program for key employees with allotment of warrants for shares in KappAhl.
Incentive program 2012-2015
In 2011, the annual general meeting decided to issue no more than 6,750,000 warrants entitling to subscription of no more than 6,750,000 shares in KappAhl AB (publ) and agreed that no more than 6,750,000 of such warrants on market terms were transferred to certain key persons in the KappAhl group.
The purpose of the program was partly to create opportunities for the KappAhl group to maintain and recruit qualified key employees, partly by offering a long-term ownership commitment among key employees, to encourage them to an increased interest in the business and its financial development as well as to increase the sense of solidarity to the KappAhl group.
The offer was subscribed for by 99.9% and 6,744,000 warrants were acquired by certain key persons including the company's CEO. The warrant premium was set at SEK 0.58. The subscription price was set at SEK 7.60, which was 125 percent of the noted volume weighted average settled price for shares in KappAhl at Nasdaq Stockholm's official stock exchange list during the period as from December 22, 2011 up until January 5, 2012.
The warrants ran up to and including February 6, 2015 but could only be exercised in the last 10 banking days of that period. Each warrant entitled the holder to subscribe for one new share in KappAhl, which enabled subscription of a maximum of 6,744,000 shares. Upon full subscription of shares due to the warrants the company's share capital could have been increased by not more than SEK 963,428.57.
More information about the program is available in the annual general meeting 2011 documents.
Recalculation in 2012
Owing to the reverse split of shares in December 2012 KappAhl recalculated the warrants. After recalculation each warrant entitled the holder to subscribe for 0.27 new shares at a subscription price of SEK 28.80 per share. Thus the warrants could have increased the number of shares in KappAhl by a maximum of 1,820,880 and the share capital by a maximum of SEK 1,565,956.80.
Warrant redemption in 2015
The warrants expired on February 6, 2015 and subscription of shares was registered in February 2015. Of the 6,774,000 warrants, 6,594,000 were exercised, meaning that the number of shares was increased by 1,780,380 and the share capital by SEK 1,526,040.
KappAhl currently has no outstanding share-based incentive programs.