Midatech Pharma Plc | CIK:0001643918 | 3

  • Filed: 4/24/2018
  • Entity registrant name: Midatech Pharma Plc (CIK: 0001643918)
  • Generator: Novaworks Software
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1643918/000121465918002960/0001214659-18-002960-index.htm
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    • ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory

    28 Share-based Payments

     

    Share Options

     

    The Group has issued options over ordinary shares under the 2014 Midatech Pharma PLC Enterprise Management Incentive Scheme, the Midatech Pharma PLC 2016 U.S. Option Plan, which is a sub-plan of the approved UK plan, and unapproved share options awarded to non-UK or non-US staff. In addition, certain share options originally issued over shares in Midatech Ltd under the Midatech Limited 2008 unapproved share option scheme or Midatech Limited 2013 approved Enterprise Incentive scheme were reissued in 2015 over shares in Midatech Pharma PLC under the 2014 Midatech Pharma PLC Enterprise Management Incentive Scheme. Exercise of an option is subject to continued employment.

     

    Details of all share options granted under the Schemes are set out below:

     

    Date of grant

     

     

    		   At 1
    January
    2017    		    

    Granted
    in 2017

     

    		    

    Exercised
    in 2017

     

    		    

    Forfeited in
    2017

     

      

    		   At 31
    December
    2017    		    

    Exercise

    Price

     

    		  
                                         
    31 December 2008     26,122       -       -       -       26,122     £ 1.425  
    31 December 2008     3,000       -       -       -       3,000     £ 3.985  
    1 April 2010     25,110       -       -       -       25,110     £ 4.00  
    20 August 2010     41,766       -       -               41,766     £ 4.19  
    13 September 2011     3,000       -       -       -       3,000     £ 4.19  
    20 April 2012     35,796       -       -       -       35,796     £ 4.19  
                                                     
    9 May 2014     200,000       -       -       -       200,000     £ 0.075  
    30 June 2014     880,000       -       -       -       880,000     £ 0.075  
    11 July 2014     3,000       -       -       1,000       2,000     £ 0.075  
    31 October 2016     50,000       -       -       -       50,000     £ 1.710  
    31 October 2016     607,600       -       -       -       607,600     £ 2.680  
    14 December 2016     8,000       -       -       -       8,000     £ 1.550  
    14 December 2016     10,000       -       -       -       10,000     £ 1.700  
    14 December 2016     3,000       -       -       3,000       -     £ 1.710  
    14 December 2016     3,000       -       -       3,000       -     £ 1.730  
    14 December 2016     3,000       -       -       3,000       -     £ 1.740  
    14 December 2016     40,000       -       -       -       40,000     £ 1.870  
    14 December 2016     40,000       -       -       -       40,000     £ 1.880  
    15 December 2016     197,000       -       -       95,000       102,000     £ 1.210  
    19 December 2016     1,110,000       -       -       5,750       1,104,250     £ 1.210  
    15 December 2017     -       1,351,250       -       -       1,351,250     £ 0.46  
                                                     
          3,289,394       1,351,250       -       (110,750 )     4,529,894          
                                                     

     

    Options exercisable at 31 December 2017     1,000,469  
    Weighted average exercise price of outstanding options at 31 December 2017   £ 1.003  
    Weighted average exercise price of options exercised in 2017     n/a  
    Weighted average exercise price of options forfeited in 2017   £ 1.242  
    Weighted average exercise price of options granted in 2017   £ 0.46  
    Weighted average remaining contractual life of outstanding options at 31 December 2017  

    8.3 years

     

    		  

     

     

    Date of grant

     

     

    		   At 1
    January
    2016    		    

    Granted
    in 2016

     

    		    

    Exercised
    in 2016

     

    		    

    Forfeited in
    2016

     

    		     At 31
    December
    2016    		    

    Exercise
    Price

     

    		  
                                         
    31 December 2008     26,122       -       -       -       26,122     £ 1.425  
    31 December 2008     15,500       -       -       (12,500 )     3,000     £ 3.985  
    1 April 2010     25,110       -       -       -       25,110     £ 4.00  
    20 August 2010     41,766       -       -               41,766     £ 4.19  
    13 September 2011     3,000       -       -       -       3,000     £ 4.19  
    20 April 2012     35,796       -       -       -       35,796     £ 4.19  
                                                     
    9 May 2014     200,000       -       -       -       200,000     £ 0.075  
    30 June 2014     880,000       -       -       -       880,000     £ 0.075  
    11 July 2014     5,000       -       -       (2,000 )     3,000     £ 0.075  
    31 October 2016     -       50,000       -       -       50,000     £ 1.710  
    31 October 2016     -       607,600       -       -       607,600     £ 2.680  
    14 December 2016     -       8,000       -       -       8,000     £ 1.550  
    14 December 2016     -       10,000       -       -       10,000     £ 1.700  
    14 December 2016     -       3,000       -       -       3,000     £ 1.710  
    14 December 2016     -       3,000       -       -       3,000     £ 1.730  
    14 December 2016     -       3,000       -       -       3,000     £ 1.740  
    14 December 2016     -       40,000       -       -       40,000     £ 1.870  
    14 December 2016     -       40,000       -       -       40,000     £ 1.880  
    15 December 2016     -       197,000       -       -       197,000     £ 1.210  
    19 December 2016             1,110,000       -       -       1,110,000     £ 1.210  
                                                     
          1,232,294       2,071,600       -       (14,500 )     3,289,394          

     

    Options exercisable at 31 December 2016     468,194  
    Weighted average exercise price of outstanding options at 31 December 2016   £ 1.234  
    Weighted average exercise price of options exercised in 2016     n/a  
    Weighted average exercise price of options forfeited in 2016   £ 3.446  
    Weighted average exercise price of options granted in 2016   £ 1.685  
    Weighted average remaining contractual life of outstanding options at 31 December 2016  

    8.6 years

     

    		  

     

     

    Date of grant

     

     

    		   At 1
    January
    2015    		    

    Granted
    in 2015

     

    		    

    Exercised
    in 2015

     

    		    

    Forfeited
    in 2015

     

    		     At 31
    December
    2015    		    

    Exercise
    Price

     

    		  
                                         
    31 December 2008     26,122       -       -       -       26,122     £ 1.425  
    31 December 2008     15,500       -       -       -       15,500     £ 3.985  
    1 April 2010     25,110       -       -       -       25,110     £ 4.00  
    20 August 2010     59,666       -       -       (17,900 )     41,766     £ 4.19  
    13 September 2011     3,000       -       -       -       3,000     £ 4.19  
    20 April 2012     35,796       -       -       -       35,796     £ 4.19  
    3 April 2014     26,500       -       (26,500 )     -       -     £ 0.075  
    9 May 2014     200,000       -       -       -       200,000     £ 0.075  
    30 June 2014     880,000       -       -       -       880,000     £ 0.075  
    11 July 2014     11,000       -       -       (6,000 )     5,000     £ 0.075  
                                                     
          1,282,694       -       (26,500 )     (23,900 )     1,232,294          

     

    Options exercisable at 31 December 2015     366,044  
    Weighted average exercise price of outstanding options at 31 December 2015   £ 0.502  
    Weighted average exercise price of options exercised in 2015   £ 0.075  
    Weighted average exercise price of options forfeited in 2015   £ 4.193  
    Weighted average exercise price of options granted in 2015     n/a  
    Weighted average remaining contractual life of outstanding options at 31 December 2015   7.8 years  

     

    All of the 1,351,250 options granted during 2017, contain the following conditions:

     

      · 25% (i.e. 337,812 options) become eligible to vest on the first anniversary of the relevant date of grant; and

     

      · A further 6.25% (i.e. 84,453 options) vest every 3 months following the first anniversary of the date of grant such that by the fourth anniversary all 1,351,250 options shall have be eligible for vesting.

     

      · All vesting is subject to the 20-VWAP share price reaching £1 at any time during the life of the option.

     

    Of the 2,071,600 options granted during 2016, 1,981,600 options contain the following conditions:

     

      · 25% (i.e. 495,400 options) vest on the first anniversary of the relevant date of grant; and

     

      · A further 6.25% (i.e. 123,850 options) vest every 3 months following the first anniversary of the date of grant such that by the fourth anniversary all 1,981,600 options shall have vested.

     

      · 607,600 of these options related to 2015 but the acquisition of DARA BioSciences, Inc. and other activities during that year meant that there was insufficient time during Open periods to make the awards until 2016. However, the effective date of grant and hence basis for vesting was in 2015. As a result, 151,900 of these options had vested by 31 December 2016.

     

    The remaining 90,000 options granted during 2016 contained the following conditions:

     

      · Vesting was conditional on the same time-based vesting criteria noted above and also on the Midatech Pharma US, Inc. business achieving a revenue target for the year ended 31 December 2017. This target was not met and the options have therefore lapsed.

     

    Otherwise the main vesting condition of all share options is that the Director or employee remain employed with the Group as at the date of exercise or continues to provide consultancy services as at the date of exercise.

     

    The following information is relevant in the determination of the fair value of options granted during the year 2017 under the equity share based remuneration schemes operated by the Group.

     

     

    2017

    Number of options 1,351,250
    Option pricing models used Monte-Carlo
    Share price £0.41*
    Exercise price of options issued in
    year    		 £0.46
    Contractual life 10 years
    Expected life 5 years
    Volatility 42.5%**
    Expected dividend yield 0%
    Risk free rate 0.73%

     

      * The share price used in the determination of the fair value of the options granted in 2017 was the share price on the date of grant.

     

      ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period.

     

    The following information is relevant in the determination of the fair value of options granted during the year 2016 under the equity share based remuneration schemes operated by the Group.

     

     

    2016

    Number of options 2,071,600
    Option pricing models used Black Scholes
    Share price £1.143-£1.19*
    Exercise price of options issued in
    year    		 £1.21-£2.68
    Contractual life 10 years
    Expected life 5 years
    Volatility 40%**
    Expected dividend yield 0%
    Risk free rate 0.63%-0.74%

     

      * The share price used in the determination of the fair value of the options granted in 2016 was the average of the opening and closing share prices on the date of grant.

     

      ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period.

     

    All other share options relate to the Midatech Limited 2008 unapproved share option scheme.

     

    Share Incentive Plan

     

    In April 2017 the Group set up the Midatech Pharma Share Incentive Plan (“MPSIP”). Under the MPSIP, Group employees and directors can acquire ordinary shares in the Company via a salary sacrifice arrangement.  Midatech grants matching shares for every share bought.  In order to retain these shares, scheme participants must remain employed by the Group for three years from the date of acquisition.  All shares purchased by the MPSIP are held by an Employee Benefit Trust that is not under the control of Midatech.  Shares must be left in the plan for 5 years to qualify for full income tax and NIC relief.