Bindura Nickel employees get a piece of the pie

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  • 11.5 Million ordinary shares issued to employees
  • Employees now collectively own almost 7.5% of the company
  • Total equity increased by 10%

Zimbabwe Stock Exchange (ZSE) Listed mining company, Bindura Nickel Corporation Limited has revealed that it has issued almost 11.5 million Ordinary shares to their employees under a share option scheme set up in 2016.

11 474 206 ordinary shares were issued to beneficiaries of the Scheme during the year ended 31 March 2020, resulting in the issued share capital increasing from 1 239 656 591 to 1 251 130 797 ordinary shares.

Prior to that, Bindura Nickel on 8 December 2017, allotted 92 974 244 to eligible employees from this Scheme representing the maximum allottable shares, equivalent to 7,5% of the Company’s issued shares amounting to 1 239 656 591.

Share-option schemes are typically used as an incentive for employees.

A share option is the right to buy a certain number of shares at a fixed price, some period of time in the future, within a company.

Employees can generally exercise their share options – that is buy the shares – after a specified period, known as the vesting period at the price fixed at the date of grant which in the case of Bindura Nickel is 26 September 2016 which is US$0.003 per share, regardless of the prevailing market price.

Besides the 7.5% held by the employees through the scheme Asa Resource Group Plc (in transit to becoming Sotic International Limited) owned 74.04% while the institutions representing the Government of Zimbabwe, namely the National Social Security Authority (“NSSA”) and Melofieldde Investments (Private) Limited (owned by the Minerals Marketing Corporation of Zimbabwe – MMCZ) collectively owned 19.55%.

Meanwhile the company’s total equity increased by 10% during the year.

Equity Axis News.

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