In accordance with the Annual General Meeting’s authorization, the Board of Directors of Modulight Corporation (“Modulight” or the “Company”) decided on 12 May 2023 on a new stock option program for key persons of the Company, which will be marked with the symbol 2023 (“2023 Options”). Up to 500,000 2023 Options may be issued, and they entitle holders to subscribe for a total of up to 500,000 new shares in the Company or shares held by the Company. Subscription rights for the Shares under the 2023 Options will arise within four years from the end of their subscription period so that 20 percent of the 2023 Options can be used to subscribe for shares on 31 December 2025, 30 percent on 31 December 2026 and 50 percent on 31 December 2027. The subscription period for the shares to be issued under the 2023 Options will end on 31 December 2028 at the latest.
 
The resolutions are based on the authorization given by the Company’s shareholders on 2 May 2023 to issue stock options. Each stock option entitles its holder to subscribe for one (1) new share in the Company or share held by the Company. The subscription price of 2023 Options corresponds to the trading volume weighted average price of the Company’s share on the Nasdaq First North Growth Market Finland marketplace during the 30 days preceding the resolution of the Board of Directors, EUR 2.43 per share. The subscription price of the shares shall be entered in the Company’s invested unrestricted equity fund.
 
As a result of share subscriptions with 2023 Options, the number of shares in the Company may increase by up to 500,000 shares if new shares are issued in the subscription. The shares subscribed for on the basis of the 2023 Options correspond to a maximum total of 1.16 percent of the Company’s total shares and votes after potential share subscription if shares are subscribed for under all stock options and new shares are issued in the subscription.
 
There is a weighty financial reason for the Company to issue the 2023 Options and deviate from the pre-emptive subscription right since the stock options are intended to be part of the incentive and commitment scheme for key persons. Stock options encourage executives to work long-term in order to increase shareholder value. Stock options also aim to commit key persons to the employer.
 
The stock options are granted free of charge. In the event of the termination of the employment or service relationship of the option holder with a group company, the stock options granted to the option holder are automatically cancelled without a reimbursement if the share subscription period had not begun at the time of termination of the employment or service relationship.
 
The terms and conditions of the 2023 Options are attached to this release and available on the Company’s website.
 
 MODULIGHT CORPORATION