Capitol Health Limited provide the market with a business update.
Doctor Equity Incentive Scheme
As part of Capitol’s strategy of improved clinical focus and Doctor engagement the Company has introduced a Doctor equity incentive scheme.
The scheme involves the issue of unlisted options over ordinary Capitol shares at a 10% premium to the 30 trading day volume weighted average price prior to the offer date
The scheme is intended to be offered to Doctors on an ongoing basis and has a number of qualifying and vesting conditions;
- Doctors must be employed for at least 6 months to qualify
- The options vest over a three year period (end of year 1 -10%, year 2-20%, and year 3-70%)
- The options have a 3.5 year life
- Several operational and professional qualifying conditions also exist
The first grant of options was offered to Doctors on 11 May 2018 and has now been completed (Appendix 3B to follow this announcement) and involves the issue of 27.9 million options at a strike price of $0.3006 (30.06 cents per option), to Doctors of the group. 90% of eligible Doctors elected to participate.
The grant of options to eligible Doctors assists in the motivation, retention and reward of Doctors of the Company and its subsidiaries. These options also form an important part of a comprehensive remuneration strategy for the Company’s employees, aligning their interests with those of the Company. Further, it seeks to reward performance in support of achievement of business strategy and allows the participant the opportunity to share in the growth in value of the Company.
Reaffirms FY18 Earnings Guidance
The Board is also pleased to advise it reaffirms its EBITDA earnings guidance (before transaction and ISI costs) issued to the market on 27 February 2018 in the range of $23m -$25m.
Clinic Acquisition and Employment of Dr Ivor Berman
The Board is also pleased to advise that the Company has acquired a small (2 day / week) radiology clinic in metropolitan Melbourne and secured the full-time services of its owner Dr. Ivor Berman. Dr Berman is a leading Musculoskeletal Radiologist and Phlebologist (Vein Specialist). With over 20 years of experience, Dr Berman specializes in the diagnosis and treatment of a variety of musculoskeletal and sports injuries.
Dr Berman will be part of our Vermont clinic group in metropolitan Melbourne (including the new Vermont Private Hospital site). Notably, Dr Berman previously held the role of senior Radiologist at the nearby Knox Private Hospital.
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