Business
Cancellation of Options
Cancellation of Options.
About this update from Sancus Lending Group Limited
[{"type":"text","content":"\n T2 Income Fund Limited\n22 April 2008\n\n T2 Income Fund Limited\n\n Announcement of Cancellation of Investment Adviser Options\n\nThe Directors of T2 Income Fund Limited (TIDM: T2I) (the 'Company') announce\nthat agreement has been reached with T2 Advisers, LLC, the Company's investment\nadviser (the 'Investment Adviser') for the cancellation of the options held by\nthe Investment Adviser to acquire 4,222,222 of the Company's ordinary shares\n(the 'Options'), in consideration of a one off cash payment by the Company to\nthe Investment Adviser of £1.4 million. The cancellation became effective on 21\nApril 2008. Cancellation of the Options will prevent the dilutive effect of\ntheir exercise. The Company's Board of Directors, having considered the\neconomic effect of that dilution (which represented a growing liability with a\npotential terminal value much greater than the one off payment to the Investment\nAdviser), has determined the transaction to be in the best interests of the\nCompany's shareholders.\n\nOptions to acquire 4,222,222 ordinary shares were awarded to the Investment\nAdviser at the time of the Company's admission to AIM. All of these Options are\ncurrently exercisable and will remain so until 5 August 2015.\n\nThe Options awarded at admission initially had an exercise price of £1 per\nshare. The exercise price has been reduced by the amount of each dividend\nsubsequently declared by the Company. The exercise price will continue to be\nreduced by the amount of each dividend declared by the Company prior to exercise\nof the Options, subject to a minimum exercise price of 1p per share. Therefore,\nexercise of the Options by the Investment Adviser could be significantly\ndilutive to shareholders, and this dilutive effect will further increase as the\nCompany continues to declare dividends and the exercise prices for the Options\ndecrease.\n\nAccordingly, the Company and the Investment Adviser have reached agreement that\nthe Investment Adviser should now surrender the Options for cancellation by the\nCompany in consideration of payment by the Company to the Investment Adviser of\n£1.4 million. This amount has been agreed between the Company and the\nInvestment Adviser based on a determination of the present value of the Options\nwith the application of a further discount.\n\nThe cancellation of the Options by ...