TORONTO, Oct. 16, 2014 /CNW/ - Sumtra Diversified Inc. (NEX Board: SDV.H) ("Sumtra" or the "Company") announced today that, subject to regulatory approval and shareholder ratification, it has amended its 10% rolling stock option plan to decrease the minimum exercise price for options granted thereunder from $0.10 per share to $0.05 per share (the "Plan Amendment"), consistent with recent amendments to the minimum pricing rules of the TSX Venture Exchange.
In addition, subject to regulatory approval, disinterested shareholder approval and shareholder ratification of the Plan Amendment, it has amended the exercise price of 563,650 stock options previously granted to directors and officers under its stock option plan from $0.10 per share to $0.05 per share (the "Option Amendments") to better incentivize such service providers. The amended exercise price continues to represent a significant premium to the trading price of Sumtra's common shares. The amended exercise price will not be effective unless and until both shareholder ratification is received for the Plan Amendment and disinterested shareholder approval is received for the Option Amendments.
Sumtra also announced that, subject to regulatory approval, disinterested shareholder approval and shareholder ratification of the Plan Amendment, it has granted options to acquire an additional 60,000 common shares to directors and officers under the Company's stock option plan. Each option vests immediately and entitles the holder to acquire one common share at an exercise price of $0.05 per share until April 13, 2021, the same expiry date as all currently outstanding options. Until all required shareholder approvals are received or if not ultimately received, the options will be exercisable at a price of $0.10 per share.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Sumtra Diversified Inc.
For further information: Philip Hampson, CFO, Sumtra Diversified Inc., Tel: 905 591 2833, E-mail: [email protected]