G5 Entertainment announces that the company's performance based, long-term incentive program for the executive management and key employees of G5 Entertainment and its subsidiaries ("LTIP 2018") is fully allocated and 87,800 c-shares have been converted to ordinary shares, resulting in a dilution of 1.0 percent of the total number of outstanding shares. The value of 87,800 shares at the Nasdaq OMX exchange as of the date of allocation was SEK 45 M. These shares have been attributed to a total of 84 employees in all of the 5 countries where the company operates: Sweden, Ukraine, Russia, Malta, and USA. G5 has offered to sell shares on behalf of the employees as a part of the settlement procedure. Approximately 70,000 shares have been sold on behalf of the participants.
"We are proud of the achievements of our team and tremendously happy that the company's first performance share program with wide employee participation has resulted in 100% share grant. Our long-term incentive programs are targeted at a wide range of individuals across all countries where we operate, and the programs help G5 retain talented employees over long-term and align their interests with the interests of shareholders. I am very pleased to see that our employees benefit from the strong stock performance that they have been instrumental in achieving, delivering fundamentally strong results for many quarters.
This performance reward is well earned because of aggressive goals of the long-term incentive programs that we always use in G5. During the term of this program, we have achieved more than 205% appreciation of the share price, and thereby got full allocation. It is our intention to continue rewarding outstanding performance with substantial awards for the increasing number of employees of the company. In this first widely-targeted program with many participants, we have naturally seen a large proportion of the shares being sold, in part due to the administrative barriers and hurdles that exist in owning Sweden-listed shares from Ukraine and Russia. Still, the program has resulted in a number of new employee shareholders, and this number is going to grow over long term." said Vlad Suglobov, CEO of G5 Entertainment.
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