Fronde’s shareholders have approved an issue of up to 1 million new shares to four senior managers in the IT services company.
The shares are being issued at a price of $0.67 to CEO Ian Clarke and members of Fronde’s senior management team who the company was not prepared to name. The managers will pay cash for the shares.
The shares issued are ordinary shares and rank alongside other issued shares in all respects, the company told Computerworld this morning.
The issue will increase Fronde's shares on issue by 12.5 percent but will not result in any change in control of the company, Fronde says.
“The company directors are very supportive of management holdings in the company, both as a measure of belief and commitment and for the obvious alignment in business outcomes with shareholders’ expectations," says chairman Wayne Norrie.
Read more at Computerworld.