TORONTO, Dec. 18, 2020 (GLOBE NEWSWIRE) -- CF Energy Corp. (TSX-V: CFY) (“CF Energy” or the “Company”, together with its subsidiaries, the “Group”), a leading new energy service provider in the People’s Republic of China (the ”PRC” or “China”) announces the granting of share options (the “Options”) pursuant to the stock option plan (the “Stock Option Plan”) and shares (the “Award Shares”) pursuant to the employee stock award plan (the “Employee Stock Award Plan”) of the Company. Both plans were most recently approved by shareholders of the Company (the “Shareholders”) at the Company’s annual general meeting of the Shareholders held on October 29, 2020, and are subject to TSX Venture Exchange approval. Options and Award Shares granted are in recognition of the grantees’ past contributions to the Group and to encourage share ownership by and the retention of employees of the Company.
Stock Option Plan
The Company has granted Options to directors, members of management and a consultant of the Company and its subsidiaries to acquire up to an aggregate of 1,350,000 common shares (“Common Shares”) of the Company. All the Options are exercisable at a price of CAD0.60 per Common Share, which is higher than the closing price of the Company’s shares of CAD0.44 on the TSX Venture Exchange on December 17, 2020, being the last trading day immediately preceding the grant date of December 18, 2020 (the “Grant Date”). The Options granted vested immediately on the Grant Date and are exercisable for a period of three (3) years from the Grant Date. Of the 1,350,000 Options, 500,000 Options were granted to directors of the Company.
Employee Stock Award Plan
On the Grant Date, the Company has also awarded an aggregate of 2,090,000 Award Shares to seventeen members of management of the Group, including officers and certain directors of the Company under the Employee Stock Award Plan in recognition of each individual awardee’s respective past performance, potential for development, and shortfall between their salary with the Group as compared to salaries offered by certain competitors of the Group. All Award Shares are granted at the price of CAD0.43 per Common Share, which was the volume weighted average trading price of the Company’s shares on the TSX Venture Exchange for the 10 trading days immediately preceding the Grant Date. Of the 2,090,000 Award Shares, 550,000 of the Award Shares were awarded to officers and directors of the Company.
The Award Shares are subject to the following conditions:
50% of the Award Shares are subject to a three (3) year lock-up period from the Grant Date, to be proportionally released depending on the completion level of the management team’s three-year development goals set by the Company. A completion level of 80% or lower of such goals will result in the Award Shares being forfeited for no consideration;
25% of the Award Shares are subject to a one (1) year lock-up period, from the Grant Date to be released subject to the completion of the management team’s one-year development goals set by the Company. A completion level of 80% or lower of such goals will result in the Award Shares being forfeited for no consideration; and
25% of the Award Shares are not subject to any conditions.
Ann Lin, Chair and CEO of CF Energy states: “The granting of shares to senior management under the Employee Stock Award plan alongside the options is a significant and long awaited move to bridge the long time compensation gap which is critical for the retention of key members of senior management team who have been instrumental to the past and future success of the Group. Now with such assurance and support, we can continue to move forward with confidence on the implementation of our future development plan with full speed for the benefit of our shareholders.”
About CF Energy Corp. (Previously known as: Changfeng Energy Inc.)
CF Energy Corp. is a Canadian public company currently traded on the Toronto Venture Exchange (“TSX-V”) under the stock symbol “CFY”. It is an integrated energy provider and natural gas distribution company (or natural gas utility) in the PRC. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC.
Corporate Investment Relations
Executive Assistant to CEO & Chair of the Board
Director of the Board
Certain statements contained in this news release constitute forward-looking statements and forward-looking information (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact, included or incorporated by reference in this document are Forward-Looking Statements, including statements regarding activities, events or developments that the Company expects or anticipates may occur in the future. These Forward-Looking Statements can be identified by the use of forward-looking words such as “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe” or “continue” or similar words or the negative thereof. No assurance can be given that the plans, intentions or expectations or assumptions upon which these Forward-Looking Statements are based will prove to be correct and such Forward-Looking Statements included in this news release should not be unduly relied upon. Although management believes that the expectations represented in such Forward-Looking Statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such Forward-Looking Statements are not a guarantee of performance and involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such Forward-Looking Statements. These factors include, without limitation, no significant and continuing adverse changes in general economic conditions or conditions in the financial markets. Readers are cautioned that all Forward-Looking Statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company’s filings with applicable Canadian securities regulatory authorities, copies of which are available at www.sedar.com. The Company urges readers to carefully consider those factors. The Forward-Looking Statements included in this news release are made as of the date of this document and the Company disclaims any intention or obligation to update or revise any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such.
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