Max Stock announces an amendment to the agenda item for the EGM in September 2023 - Amendment of the monthly management fee payable to Mr. Ori Max - Company CEO, director and controlling shareholder

Rhea-AI Summary

Max Stock Ltd. announces an amendment to the agenda item for the extraordinary general meeting. The monthly management fee payable to the CEO will be linked to the CPI. The management fee will remain unchanged at ILS 200,000. The annual bonus will be based on annual net profit targets.

Positive

• None.

Negative

• The amendment to the management fee could potentially increase expenses for the company.

CAESAREA, Israel, Sept. 5, 2023 /PRNewswire/ -- Max Stock Ltd. (TASE: MAXO) (the "Company") announces an amendment to the agenda item for the extraordinary general meeting to be held on September 19, 2023, as follows:

Amendment of the monthly management fee payable to a company controlled by Mr. Ori Max – Company CEO, director and controlling shareholder

It is proposed to approve the amendment of the monthly management fee payable to a company wholly owned by Mr. Ori Max – Company CEO, director and controlling shareholder to be effective as of October 1, 2023 and for a three year period thereafter, whereby Mr. Max's monthly management fee shall be linked to the CPI. It should be noted that under the current proposal the management fee will remain unchanged at ILS 200,000.

There is one additional change proposed to the annual bonus payable to Mr. Max as disclosed in the earlier investor announcement, and no change has been made to the proposal, as follows:

Mr. Max's quantitative annual bonus shall be based on annual net profit targets rather than EBITDA, with the following targets and respective bonuses:

i.  For achieving an annual net profit of ILS 70-80 million, Mr. Max will be awarded a bonus totaling 4 * the amended monthly management fees.

ii.  For achieving an annual net profit of ILS 80-100 million, Mr. Max will be awarded a bonus totaling 8 * the amended monthly management fees.

iii.  For achieving an annual net profit exceeding ILS 100 million, Mr. Max will be awarded a bonus totaling 12 * the amended monthly management fees.

A convenience translation into English of the general meeting notice and the relevant voting card can be accessed at https://ir.maxstock.co.il/en/shareholders-meetings/

About Max Stock

Max Stock is Israel's leading extreme value retailer, currently present in 60 locations throughout Israel and 2 locations in Portugal. We offer a broad assortment of quality products for customers' everyday needs at affordable prices, helping customers "Dream Big, Pay Small". For more information, please visit https://ir.maxstock.co.il

Company Contacts:

Talia Sessler,
Chief Corporate Development and IR Officer
talia@maxstock.co.il

This is an English translation of a Hebrew report that was published on September 3, 2023 (Ref. No 2023-01-083422 (hereinafter: the "Hebrew Version")). This English version is only for convenience purposes. This is not an official translation and has no binding force. Whilst reasonable care and skill have been exercised in the preparation hereof, no translation can ever perfectly reflect the Hebrew Version. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail.

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SOURCE Max Stock Limited

FAQ

What is the amendment to the agenda item for the general meeting?

The amendment is related to the monthly management fee payable to the CEO.

What will the CEO's monthly management fee be linked to?

The CEO's monthly management fee will be linked to the CPI.

Will there be any change to the management fee?

No, the management fee will remain unchanged at ILS 200,000.

How will the annual bonus be calculated?

The annual bonus will be based on annual net profit targets.

What are the net profit targets for the annual bonus?

The net profit targets are ILS 70-80 million, ILS 80-100 million, and exceeding ILS 100 million.