ALLTRACEL CHIEF executive Tony Richardson could receive up to 130,000 shares in Oregon-based HemCon Medical Technologies if shareholders of the Dublin-based healthcare products company accept a £20.8 million (€26 million) offer for the business next Friday.
Under the terms of HemCon's offer for Alltracel, Mr Richardson will receive 25,000 shares if he remains with the company for one year after the deal is completed.
In addition, he will receive a minimum of 45,000 HemCon shares and possibly up to 105,000 shares if certain financial targets are met in fiscal years 2008 and 2009.
If Mr Richardson were to be allocated the full 130,000 shares he would own 1.1 per cent of HemCon.
Mr Richardson will also be granted 200,000 share options in HemCon, which will vest in equal instalments over four years. Details of the share award are included in the offer document sent recently to Alltracel shareholders.
It is not clear how much shares in HemCon are worth. The US company is privately owned and did not provide any financial details to Alltracel shareholders in the offer document.
The offer document states that HemCon plans to retain Alltracel's existing staff and offices and sees the acquisition as a good entry point for it into Europe.
Alltracel is listed on the Alternative Investment Market in London and is being sold by way of a scheme of arrangement, which requires the approval of the High Court. An extraordinary general meeting of shareholders is being held at the Fitzpatrick Castle Hotel in Killiney on Friday morning to approve the deal.
HemCon, which supplies bandages to the US army, has offered 14 pence a share for Alltracel, a 51.4 per cent premium to its closing price on the day before the offer was lodged on January 19th.
