Alcanna Inc.
Notes to the Consolidated Financial Statements
December 31, 2021 and 2020
(in thousands of Canadian dollars except share data or unless otherwise specified)
In accordance with the Company’s incentive award plan, restricted awards (“RSUs”) and performance awards (“PSUs”) are granted at the discretion of the Company’s Board of Directors. The Company has the option, wholly at its own discretion, to settle awards with cash or in common shares of the Company. The Company intends to settle all awards in common shares.
Compensation expense for equity-settled awards is recognized over each tranche vesting period by increasing contributed surplus based on the number of awards expected to vest for the RSUs, and evenly over the cliff-vesting period by increasing contributed surplus based on the number of awards expected to vest for the PSUs. The number of awards expected to vest is reviewed at least annually with any adjustments being recognized in the period they are determined.
June 19, 2020 Grant
On March 27, 2020, the Company agreed to grant 567,822 RSUs and 350,575 PSUs to senior executives of the Company. Pursuant to the terms of the incentive award agreements, the RSUs and PSUs were granted as soon as practical upon expiry of all scheduled trading black-out periods on June 19, 2020. In accordance with the definition of ‘grant date’ under IFRS 2, the grant date for vesting purposes was determined to be March 27, 2020 as this is the date on which the Company and all relevant parties agreed to the terms of the incentive award agreements.
RSUs are subject to service conditions and PSUs are subject to both service and market conditions. Of the total RSUs granted, 217,242 vested over two years, one half on each of December 31, 2020 and December 31, 2021. The remaining 350,580 RSUs vest over three years, one-third on each of March 27, 2021, 2022, and 2023. The PSUs cliff-vest on March 27, 2023.
April 9, 2021 Grant
On March 25, 2021, the Company agreed to grant 161,369 RSUs and 71,020 PSUs to senior executives of the Company, and additional 51,625 RSUs to other members of management. Pursuant to the terms of the incentive award agreements, the RSUs and PSUs were granted as soon as practical upon expiry of all scheduled trading black-out periods on April 9, 2021. In accordance with the definition of ‘grant date’ under IFRS 2, the grant date for vesting purposes was determined to be March 25, 2021 as this is the date on which the Company and all relevant parties agreed to the terms of the incentive award agreements.
RSUs are subject to service conditions and PSUs are subject to both service and market conditions. Of the total RSUs granted, 141,974 vests over two years, one half on each of April 9, 2022 and April 9, 2023. The remaining 71,020 RSUs vest over three years, one-third on each of April 9, 2022, 2023, and 2024. The PSUs cliff-vest on April 9, 2024.
Nova 2021 Equity Incentive Plan
On June 22, 2021, Nova shareholders approved and ratified the 2021 Equity Incentive Plan. In connection with this approval, it is the intention of Nova to grant 494,000 restricted share units to certain members of the senior management team when Nova is next able to do so under the Equity Incentive Plan. As Nova has communicated its intention to these individuals, a shared understanding of the terms and conditions of the award was reached, and a cash-settlement feature exists in the event that restricted share units cannot be granted, Nova has recognized an expense and accrued liability. Under the terms and conditions of the award, 118,050 units will vest
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