LongBio Pharma-B (01779.HK) to Introduce Long-term Incentive Mechanism, Plan Cap Not Exceeding 10% of Issued Shares

NewTimeSpace News: LongBio Pharma (Suzhou) Co., Ltd. (01779.HK) announced on July 16 that the Board has resolved to propose the adoption of the Company's H-share Share Option Scheme (H-share Share Option Scheme) and H-share Share Incentive Scheme (H-share Share Incentive Scheme).

The H-share Share Option Scheme and H-share Share Incentive Scheme (collectively the Share Schemes) aim to establish and improve the Company's long-term incentive mechanism, attract and retain core talent to drive business growth, and align the interests of shareholders, the Company and employees; commit to implementing a multi-pronged strategy covering R&D, clinical development and commercialization to drive the Company's commercial transformation and value enhancement; promote cooperation to achieve a future of co-creation, sharing and win-win; and drive the achievement of the Company's long-term strategic and performance goals. The Share Schemes are expected to provide the Company with flexible means to retain, reward, compensate eligible persons and/or provide incentives to them.

The H-shares subject to the options to be granted under the H-share Share Option Scheme will be satisfied through: (i) the issue and allotment of new H-shares; and/or (ii) the transfer of the Company's treasury shares (if any). The H-shares subject to the share awards to be granted under the H-share Share Incentive Scheme shall be H-shares to be acquired by the designated trustee through: (i) purchasing new H-shares from the Company at par value; (ii) using scheme funds to purchase at the prevailing market price on the secondary market; and/or (iii) using the Company's treasury shares (if any).

The maximum number of H-shares that may be allotted and issued or transferred from treasury in respect of all options and share awards to be granted under the H-share Share Option Scheme and H-share Share Incentive Scheme, as well as all options and share awards to be granted under any other share scheme of the Company, shall not exceed 10% of the total number of issued shares of the Company (excluding treasury shares (if any)) on the date of shareholders' approval of the scheme limit.

Both the H-share Share Option Scheme and H-share Share Incentive Scheme constitute share schemes under Chapter 17 of the Listing Rules of The Stock Exchange of Hong Kong Limited involving the issue of new shares by the Company or the grant of options to subscribe for new shares. The provisions of the H-share Share Option Scheme and H-share Share Incentive Scheme will comply with Chapter 17 of the Listing Rules.

The adoption of the H-share Share Option Scheme and H-share Share Incentive Scheme is conditional upon, among other things: (i) the passing of a special resolution at the Company's forthcoming extraordinary general meeting; and (ii) the listing committee of the Stock Exchange granting approval for the listing and dealing of any H-shares that may need to be issued and allotted in respect of all options and share awards to be granted under the Share Schemes.

The Company will provide shareholders with a circular in accordance with the Listing Rules in due course containing, among other things: (i) further details of the H-share Share Option Scheme; (ii) further details of the H-share Share Incentive Scheme; (iii) further details of the scheme limit; (iv) the proposed authorization of the Board and/or its representatives to handle matters related to the Share Schemes; and (v) the notice of the extraordinary general meeting.

As of the date of the announcement, the H-share Share Option Scheme and H-share Share Incentive Scheme remain subject to shareholders' approval.

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