Coelacanth Energy Inc. Announces Grant of Stock Options and Restricted Share Units

Coelacanth Energy Inc. (TSXV: CEI), an oil and natural gas exploration and development company, has announced the grant of incentive stock options (Options) and restricted share units (RSUs) to its directors, officers, employees, and consultants. The company granted a total of 3,877,378 Options and 2,657,622 RSUs to its directors and officers, and an additional 1,849,001 Options and 906,999 RSUs to its employees and consultants. The grants are subject to a vesting schedule, with 33⅓% of the Options and RSUs vesting after one year, and the remaining 66⅓% vesting annually over the next two years.

The granting of these stock options and restricted share units serves as an incentive for Coelacanth Energy's employees and executives to work towards the company's long-term goals. By aligning their interests with those of shareholders, they are motivated to contribute to the company's success, which can lead to increased productivity, innovation, and better decision-making. This can ultimately drive shareholder value.

However, the grants also result in a dilution of shareholder value, as the total number of shares outstanding increases. Before the grants, Coelacanth had 531,352,966 shares outstanding. After the grants, the total number of shares underlying the outstanding Options and RSUs on an aggregate basis is 31,157,702, representing approximately 5.86% of the issued and outstanding Common Shares. This dilution can impact the value of each share, but it's important to note that this dilution is offset by the potential benefits of having a motivated and aligned workforce.

Coelacanth Energy's share-based incentive plans limit the total number of Common Shares underlying the aggregate outstanding Options and RSUs to no more than 10% of the issued and outstanding Common Shares. This ensures that the company is mindful of the potential dilution effect of these grants on existing shareholders.

In conclusion, while the granting of stock options and restricted share units can lead to some dilution of shareholder value, the potential benefits, such as improved employee motivation, retention of key personnel, and increased company performance, can outweigh this dilution. However, it's essential for Coelacanth Energy to strike a balance between incentivizing its workforce and diluting shareholder value.