Big tree cloud Adoption of Equity Incentive Plan

Rhea-AI Summary

Big Tree Cloud Holdings (NASDAQ: DSY) has announced the adoption of its 2024 Equity Incentive Plan, approved by the board of directors. The plan allows the company to grant share options, restricted shares, restricted share units, and similar equity-based compensation to attract and retain qualified directors, employees, franchisees, and other individuals. The plan's initial cap is set at 20% of outstanding ordinary shares, with an annual increase of 1.0% starting July 1, 2024.

Positive

• Implementation of equity incentive plan to attract and retain talent
• Structured annual share pool increase mechanism of 1% to maintain incentive capabilities

Negative

• Potential 20% dilution of existing shareholders through equity incentive issuance
• Additional annual 1% dilution of shareholders starting July 2024

Insights

Financial Analyst

The adoption of this equity incentive plan represents a significant development in Big Tree Cloud's corporate structure, allowing for up to 20% of outstanding shares to be allocated for compensation purposes. The initial allocation size is substantial and the 1% annual increase provision creates a dynamic growth mechanism. Key implications: potential dilution concerns for existing shareholders, enhanced ability to attract and retain talent in China's competitive market and improved alignment of management interests with shareholders. The plan's structure suggests a long-term focus on growth and talent retention, though investors should monitor the dilution impact carefully.

SHENZHEN, China  , Oct. 31, 2024 /PRNewswire/ -- Big Tree Cloud Holdings Limited ("Big Tree Cloud" or the "Company") (NASDAQ: DSY) (NASDAQ: DSYWW), a company devoted to the development, production, and sales of personal care products and other consumer goods in China, today announced that its board of directors has approved the adoption of the Big Tree Cloud Holdings Limited 2024 Equity Incentive Plan (the "Plan"). Under the Plan, the Company will be permitted to grant share options, restricted shares, restricted share units, and similar equity-based compensation for the purpose of attracting, retaining, and incentivizing qualified directors, employees, franchisees and other individuals. The maximum number of shares which may be issued or issuable under the Plan is limited to 20% of the Company's issued and outstanding ordinary shares as of the date of the approval of the Plan, to be increased on the first day of each fiscal year of the Company during the term of the Plan commencing with the fiscal year beginning July 1, 2024, by an amount equal to 1.0% of the total number of issued and outstanding ordinary shares on the last day of the immediately preceding fiscal year.

About Big Tree Cloud

Big Tree Cloud is a consumer-oriented and mission-driven company dedicated to the development, production and sales of personal care products and other consumer goods in China. Founded in 2020, Big Tree Cloud is committed to delivering high-quality products that cater to the needs of modern, health-conscious, and independent consumers. Big Tree Cloud's innovative approach and strong community engagement set it apart in the industry, making it a trusted brand in the personal care market.

Forward-Looking Statements 

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Big Tree Cloud's future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Big Tree Cloud's expectations, strategy, priorities, plans or intentions. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. You should understand that a number of factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements, including the risks set forth under "Risk Factors" in our Registration Statement on Form F-4 and our other SEC filings. Big Tree Cloud cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Big Tree Cloud does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Investor Relations Contact
Ting Yan
Phone: +86 15986815865
Email: yanting@bigtreeclouds.com 

View original content:https://www.prnewswire.com/news-releases/big-tree-cloud-adoption-of-equity-incentive-plan-302293175.html

SOURCE Big Tree Cloud Holdings Limited

FAQ

What is the maximum share allocation under Big Tree Cloud's (DSY) 2024 Equity Incentive Plan?

The maximum share allocation is 20% of the company's issued and outstanding ordinary shares as of the plan approval date, with an annual increase of 1.0% starting July 1, 2024.

When does Big Tree Cloud's (DSY) annual share increase for the Equity Incentive Plan begin?

The annual 1.0% share increase begins on July 1, 2024, and will continue on the first day of each fiscal year during the plan's term.

What types of equity compensation can Big Tree Cloud (DSY) grant under its 2024 Plan?

Under the 2024 Equity Incentive Plan, Big Tree Cloud can grant share options, restricted shares, restricted share units, and similar equity-based compensation.