Incentive programs

Incentive Program 2016/2019

At the Annual General Meeting on May 12, 2016, the Board approved a proposal to introduce an incentive program for senior executives and key employees within the Cherry Group. In total, 145,000 warrants have been issued in the program. These were subscribed free of charge by the subsidiary Cherry Casino Syd AB. For employees in Sweden, the program offered an offer to acquire warrants of class B shares in Cherry at market price (calculated according to the Black & Scholes model). A total of 37,000 warrants were acquired by employees in Sweden at a price of SEK 8.09 per option. Senior executives and key employees in Malta (as well as in some other jurisdictions) received warrants of class B Cherry shares free of charge. A total of 94,000 warrants have been assigned to employees in Malta (as well as in some other jurisdictions). The cost of the employee stock option program outside Sweden is reported in accordance with IFRS 2. The remaining 6,000 warrants, which were not subscribed or awarded, are still held by Cherry Casino Syd AB. The exercise price was fixed at SEK 229.30 per share. Shares can be subscribed during the period 1 to 30 June 2019. With full subscription, with all subscribed and allotted warrants, 139,000 new class B shares can be issued, which at the time of the 2017 Annual General Meeting represented a maximum dilution of approximately 2.02 percent of Cherry’s total shares and 1.41 percent of Cherry’s total voting rights.

Incentive Program 2017/2020

At the Annual General Meeting of May 16, 2017, the Board approved a proposal to introduce an incentive program for senior executives and key employees within the Cherry Group. In total, 175,500 warrants can be issued in the program. These shall be subscribed for free of charge by the subsidiary Cherry Casino Syd AB. For employees in Sweden, the program includes an offer to acquire warrants of class B shares in Cherry at market price (calculated according to the Black & Scholes model). Senior executives and key employees in Malta (and in some other jurisdictions) will receive warrants of Series B Cherry shares free of charge. The cost of the stock option program for staff resident outside Sweden is reported in accordance with IFRS 2. Warrants that will not be subscribed or awarded will continue to be held by Cherry Casino Syd AB. The exercise price was fixed at SEK 457.26 per share. Shares may be subscribed during the period 15-30 June 2020. Provided that all warrants are subscribed or awarded, 175,500 new class B shares may be issued on full subscription with all subscribed and subscribed warrants, which at the time of the 2017 Annual General Meeting represented a maximum dilution of approximately 2.02 percent of Cherry’s total shares and 1.41 percent of Cherry’s total voting rights.