19th Feb 2016 16:14
LONDON (Alliance News) - Paternoster Resources PLC Friday said it has amended the terms of its call option agreements with two executives of fellow London-listed Plutus PowerGen PLC.
The Chief Executive of Plutus PowerGen, Philip Stevens, and Chief Operating Officer Paul Lazarevic were awarded the call option agreements as part of the deal that led to Plutus PLC and PowerGen Ltd merging to form the current-day company.
The two individuals were awarded the agreements by Paternoster, a shareholder in Plutus PowerGen, over a combined total of 20.0 million existing shares in Plutus PowerGen and were originally exercisable up until February 22 at an exercise price of 0.6 pence each.
However, Paternoster Friday said it has now reached an agreement with the two individuals to extend the deadline by three months to May 22, and agreed to increase the exercise price by 25% to 0.75 pence per Plutus share.
Paternoster shares were up 2.6% to 0.179 pence whilst Plutus shares were down 4.4% to 1.10 pence per share on Friday - meaning the amended price is still substantially below Plutus' current share price.
The individuals would, if exercised, acquire the 20.0 million existing shares in Plutus that are held by Paternoster. Paternoster said the sale of the shares to the two individuals would yield three times the amount in proceeds than what it originally invested.
Currently, Paternoster holds 69.3 million shares in Plutus PowerGen, representing a 10% stake in the company. Plutus PowerGen released its own statement Friday confirming the call option agreement has been amended.
By Joshua Warner; [email protected]; @JoshAlliance
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