Microbix Announces Issuance of Stock Options

Using Shareholder-Approved Plan to Incentivize and Retain

MISSISSAUGA, Ontario, Feb. 26, 2024 (GLOBE NEWSWIRE) --  Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix), a life sciences innovator, manufacturer and exporter, announces the issuance of stock options under its shareholder-approved 2018 stock option plan (the “Stock Option Plan”), as part of its compensation programs to incentivize and retain its board of directors, executives, and managers.

Details of the Option Issuance

In consultation with management, Microbix’s Board of Directors has approved the issuance of 2,795,000 options in accordance with the terms of the Stock Option Plan. The approved options are exercisable at a price of $0.40 per share, as determined by the closing price of the TSX on 22 February, 2024. Each option will vest and be exercisable after three (3) years and have a total life of five (5) years. The stock option grants form part of the total remuneration package for the recipients and are subject to TSX approval.

Management Discussion

Microbix management believes that stock options are an important tool to incentivize and retain senior personnel, particularly for smaller, publicly-listed companies. In February 2019, Microbix announced its intention to broadly use its stock option plan once per year – following the issuance of its Q1 results.

The options now issued are being allocated across 35 individuals that comprise the more senior tiers of Microbix’s approximately 110 employees, inclusive of its independent directors. The quarterly expense incurred as a result of this option award is estimated to be $52,000, and will represent approximately 2% of total company compensation costs. The potentially dilutive impact of this option issuance may be up to 2% of the issued and outstanding shares of Microbix, offset in part by normal-course issuer bid (“NCIB”) share repurchases that have totaled approximately 600,000 shares since the initiation of the most recent NCIB in December 2023.

About the Microbix Stock Option Plan

Details of the Stock Option Plan are available on Microbix’s website (www.microbix.com), via SEDAR (www.sedar.com), and are provided as an appendix to the current Management Information Circular. The Stock Option Plan is a “rolling” plan that permits issuance of options representing up to 10% of Microbix’s issued and outstanding common shares. Prior to the current issuance, a total of 10,419,000 options had been issued and are outstanding, with an average exercise price of $0.46 and average remaining life of 2.6 years. Following the current issuance, a total of 13,214,000 options will be outstanding, comprising approximately 96% of the current plan availability. The plan is administered under the supervision of the Board of Microbix or the human resources, compensation and governance committee of the Board.