Voyageur Pharmaceuticals Ltd (TSX-V:VM, OTC:VYYRF) said it has issued 125,322 Deferred Share Units (DSUs) to directors under its fixed 10% equity incentive compensation plan adopted by the company following receipt of shareholder approval on June 28, 2021.
Each DSU represents a right of the holder to receive one common share of the corporation effective as of the date that the holder ceases service as a director of the company. The DSUs are used to compensate directors of the corporation for their annual retainers. The DSUs do not have an exercise price but have a starting value equal to approximately $0.09974 per DSU, based on the weighted average share price for the quarter ended September 30, 2022. The DSUs are subject to the terms of the plan and the policies of the TSX Venture Exchange (TSX-V).
The company further announced that it has issued 796,594 common shares to former directors of the company under the terms of their DSUs. In addition, the company has agreed to pay existing debts to these same directors in the aggregate amount of $12,500 through the issuance of 125,322 common shares at a deemed price of $0.09974 per common share.
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The proposed share payment relates to a portion of director fees that were earned by these former directors during the quarter ended September 30, 2022, which in accordance with the company's compensation strategy, would be paid by the issuance of DSUs in the normal course. Because these directors did not stand for re-election at the company's annual shareholder meeting on September 28, 2022, they were no longer eligible to receive DSUs under the plan.
The share payments are subject to regulatory approval, including the approval of the TSX-V. The common shares issued under the share payment are subject to a four-month hold period from the date of issuance.
Voyageur is focused on the development of barium and iodine Active Pharmaceutical Ingredients (API) and high-performance cost-effective imaging contrast agents for the medical imaging marketplace. Voyageur's goal is to fully integrate the barium and iodine contrast market by producing its own minerals of barium and iodine. The business plan is to initially generate cash flow from operations using third-party GMP pharmaceutical manufacturers in Canada and validate the products for regulatory agencies globally. Then transitioning into a high-margin domestic manufacturer of radiology drugs.
Voyageur has plans to build carbon-neutral infrastructure to become 100% self-sufficient across all manufacturing activities. Voyageur owns a 100% interest in three barium sulphate (barite) projects including the Frances Creek property, suitable in grade for the pharmaceutical marketplace, with additional interests in a high-grade iodine, lithium & bromine brine project located in Utah, USA. Voyageur is moving forward with its business plan of becoming the only fully integrated carbon-neutral company in the radiology contrast media drug market, by controlling all primary input costs.
Contact the author at jon.hopkins@proactiveinvestors.com