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Rovio Entertainment Corp.: THE BOARD OF DIRECTORS RESOLVED TO UPDATE LONG-TERM INCENTIVE PROGRAMS(May 17, 2018)
ROVIO ENTERTAINMENT CORPORATION STOCK EXCHANGE RELEASE MAY 17, 2018 AT 09:00 am. EET
THE BOARD OF DIRECTORS OF ROVIO ENTERTAINMENT CORPORATION RESOLVED TO UPDATE LONG-TERM INCENTIVE PROGRAMS
The Board of Directors of Rovio Entertainment Corporation approved in 2017 a long-term incentive program consisting of a stock option plan for all employees, including the CEO and the Rovio management, and a restricted share unit plan for selected key employees. Long-term incentive programs are aimed at committing and motivating the management and other personnel, and harmonize the interests of shareholders and personnel. The Board has resolved to update the schedule for the stock options 2018 and 2019 while keeping the maximum total number of stock options 2017-2019 unchanged, as well as to add more gross shares to the restricted share unit plan.
With the update of long-term incentive programs, Rovio aims to affirm the retaining effects of the programs. In addition, the updated stock option allocation and pricing schedule have a better fit with the company's schedule for annual remuneration decisions as a listed company.
The maximum total number of stock options to be issued in 2017-2019 is 5,000,000. Each stock option entitles the stock option owner to subscribe for one new share in the company or existing share held by the company.
Of the stock options, a total of 1,666,667 are marked with the symbol 2017A-B, a total of 1,666,667 are marked with the symbol 2018A-B, and a total of 1,666,666 are marked with the symbol 2019A-B.
The Board of Directors has resolved to update the share subscription periods and the share subscription prices of the stock options 2018A-B and of the stock options 2019A-B.
The updated share subscription period will be, for stock options 2018A-B, June 1, 2020-May 31, 2021, and for stock options 2019A-B, June 1, 2021-May 31, 2022.
The new share subscription prices will be, for stock options 2018A-B, the trade volume weighted average quotation of the company's share on Nasdaq Helsinki Ltd during May 2-31, 2018, and for stock options 2019A-B, the trade volume weighted average quotation of the company's share on Nasdaq Helsinki Ltd during May 2-31, 2019. The share subscription prices of the class A stock options may be decreased by the amount of dividends and other distribution of assets resolved before share subscriptions.
In addition, the Board of Directors has resolved to increase the number of the shares to be allocated on the basis of the restricted share unit plan by 800,000 gross shares. The rewards to be allocated on the basis of the entire plan will amount to a maximum total of 1,300,000 Rovio Entertainment Corporation shares including also the proportion to be paid in cash.
ROVIO ENTERTAINMENT CORPORATION
The Board of Directors
Rene Lindell, CFO, tel. +358 207 888 300 (switchboard)
Nasdaq Helsinki Ltd
Rovio is a games-first entertainment company that creates, develops and publishes mobile games and acts as a brand licensor in various entertainment and consumer product categories. The Company is best known for the global Angry Birds brand, which started from a popular mobile game in 2009. Today, the Company offers multiple mobile games, has produced The Angry Birds Movie, which opened number one in theatres in 50 countries, and licenses the Angry Birds brand to consumer products and other entertainment content. Rovio's operations are divided into two business units, Games and Brand Licensing. Rovio is headquartered in Finland and has offices in Sweden, the United Kingdom, China and the United States.