Zealand Pharma grants sign-on warrants and performance stock units under the employee warrant program and management long-term incentive program - Seite 2

Vested PSUs entitle the holder to receive shares in Zealand at no cost, provided the holder's continued employment throughout the vesting period. Vested PSUs convert into a number of shares equal to between 0% to 150% of the PSUs, depending on the achievement of the performance targets.

Warrants

The warrant program is an incentive scheme reflecting Zealand’s objective to attract and retain first-rate employees and to help ensure shared short- and long-term interests for the management and employees with shareholders of Zealand.

The 14,038 warrants give the rights to subscribe for up to 14,038 newly issued Zealand shares with a nominal value of DKK 1 each, corresponding to a total of 0.03% of Zealand's total outstanding share capital. The exercise price is DKK 203, calculated as the closing price of Zealand’s shares on Nasdaq Copenhagen on December 1, 2022.

The warrants granted to the CFO will vest annually in equal tranches over a three-year period, and the exercise of the warrants may take place, in whole or in part, in defined time windows from December 2, 2022 up to and including December 2, 2027.

The exercise windows for all granted warrants are defined as four times a year during a four-week window following the time of publication of either the Zealand's annual report or quarterly or semi-annual reports (three, six and nine months respectively).

The total new warrants granted have a combined market value of DKK 1.3 million calculated on the basis of the Black–Scholes model. The costs of each warrant issued to the CFO is DKK 89.76 based on Black-Scholes parameters for Corporate Management grants, which are a volatility of 59.4%, a risk-free interest rate of 2.14% and a share price of DKK 203.

The total value of the share-based sign-on payment, including both PSUs and warrants, cannot exceed 200% of the fixed annual base salary for the CFO.

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About Zealand Pharma A/S

Zealand Pharma A/S (Nasdaq: ZEAL) ("Zealand") is a biotechnology company focused on the discovery and development of peptide-based medicines. More than 10 drug candidates invented by Zealand have advanced into clinical development, of which two have reached the market and three candidates are in late-stage development. The company has development and partnerships with a number of blue-chip pharma companies as well as commercial partnerships for its marketed products.