New Zealand Energy Corp. Announces Grant of Stock Options

Rhea-AI Summary

New Zealand Energy Corp. (TSXV: NZ) announced the grant of 1,400,000 stock options to its directors, officers, and consultants, subject to regulatory approval. These options come with an exercise price of C$0.84 and will expire on May 13, 2027. The company utilized exemptions under Multilateral Instrument 61-101 to bypass formal valuation and minority approval requirements, as the fair market value of the options did not exceed 25% of the company's market capitalization. This grant aims to align the interests of key stakeholders with the company's performance goals.

Positive

• Grant of 1,400,000 stock options aligns interests of directors, officers, and consultants with company performance goals.
• Exercise price set at C$0.84, potentially attractive for future gains if the stock price appreciates.
• Expiry date of May 13, 2027, provides a long-term incentive for stakeholders.

Negative

• Granting stock options causes potential shareholder dilution.
• Using exemptions under Multilateral Instrument 61-101 may raise concerns about transparency and fairness.
• Stock options may not provide immediate financial benefit to shareholders.

Vancouver, British Columbia--(Newsfile Corp. - May 13, 2024) - New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") announced today that, subject to regulatory approval, it has granted a total of 1,400,000 options to purchase common shares of NZEC to directors, officers and consultants of NZEC, with an exercise price of C$0.84 and an expiry date of May 13, 2027. The Company relied on section 5.5(b) of Multilateral Instrument 61-101 as the exemption from ‎the formal valuation requirements of MI 61-101 in respect of the grant of options to the directors and officers of ‎the Company as the common shares of the Company are not listed on a specified market (and ‎the common shares are only listed on the TSX Venture Exchange). The Company relied on ‎section 5.7(a) of MI 61-101 as the exemption from the minority approval requirements of MI 61-‎‎101 in respect of the grant of options to the directors and officers of the Company as neither the fair market ‎value of the subject matter of, nor the fair market value of the consideration for, the grant of the ‎options to the director of the Company exceeded 25% of the Company's market capitalization.

On behalf of the Board of Directors

New Zealand Energy Contacts
Email: info@newzealandenergy.com
Website: www.newzealandenergy.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/209056

FAQ

What did New Zealand Energy Corp. announce on May 13, 2024?

New Zealand Energy Corp. announced the grant of 1,400,000 stock options to its directors, officers, and consultants.

What is the exercise price for the stock options granted by New Zealand Energy Corp.?

The exercise price for the stock options is C$0.84.

When do the stock options granted by New Zealand Energy Corp. expire?

The stock options expire on May 13, 2027.

What exemptions did New Zealand Energy Corp. use for the stock option grant?

New Zealand Energy Corp. used exemptions under Multilateral Instrument 61-101 for formal valuation and minority approval requirements.

How many stock options did New Zealand Energy Corp. grant?

New Zealand Energy Corp. granted a total of 1,400,000 stock options.