Company Announcements

AIM: FIPP

17 March 2023

Frontier IP Group plc

("Frontier IP" or the "Group")

Grant of options

Frontier IP, a specialist in commercialising intellectual property, announces that, on 16 March 2023, the Board granted options over a total of 760,226 ordinary shares of 10 pence each in the Company ("Ordinary Shares") to certain Executive Directors and personnel of the Company (the "Options").

The Options have been granted through a combination of:

(i)            grants under the Frontier IP Group plc Unapproved Share Option Plan 2021, which includes the terms of the Long-Term Incentive Plan ("LTIP") details of which were approved by shareholders at the annual general meeting of the Group held on 9 December 2022; and

(ii)           grants under the Company's approved Company Share Option Plan (the "CSOP").

A total of 643,376 grants have been made, structured as grants of nominal cost options, at a price of 10 pence per share under the terms of the Company's Unapproved Share Option Plan. The exercise period of the options granted commences on 16 March 2026 and expires on 15 March 2033. Further details on the LTIP and the vesting criteria are set out below.

A total of 116,850 Options have been granted under the CSOP (the "CSOP Grants") with an exercise price of 66.5 pence per share, being the closing mid-market price of an existing ordinary share on 15 March 2023, the business day prior to the grant date. The exercise period of the CSOP Grants commences on 16 March 2026 and expires on 15 March 2033.

The Options have been granted as follows:

The Options have been granted in line with the aim of the Company's remuneration policy which is to incentivise and reward appropriately in order to attract and retain the best people in support of the Group's strategy.

Following the grants detailed above, the Company now has a total of 5,099,064 options outstanding over Ordinary Shares, representing 9.16% of the Company's current issued share capital.

Background and details on LTIP

At the Company's 2022 annual general meeting, the Board received the approval of shareholders for the terms of the LTIP. The LTIP is based on annual awards of performance shares, structured as nominal cost options, with vesting linked 70% to net asset value per share and 30% to total shareholder return measured over 3 financial years.

In order to enable such grants, the terms of the previous unapproved option plan rules were amended to reflect the terms of the LTIP.

The LTIP rules include:

1.    a limit of 15% of issued share capital at time of grant on the number of shares that have been issued, or transferred out of treasury, on the exercise of options granted, and in satisfaction of any other awards made under the share schemes operated by the Company during the period of ten years ending on the grant date with no limit to the number of nil or nominal cost awards within the 15% limit; and

2.    LTIP participants include the executive directors and other Group employees; allocations are made annually from an aggregate award pool, which is limited in size to ensure sufficient shares are available to grant in future years without exceeding the Group's dilution limit of 15% of issued share capital over the prior ten years. The LTIP includes an individual grant limit of 200% of salary in any financial year.

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them.

ENQUIRIES

ABOUT FRONTIER IP

Frontier IP unites science and commerce by identifying strong intellectual property and accelerating its development through a range of commercialisation services. A critical part of the Group's work is involving relevant industry partners at an early stage of development to ensure technology meets real world demands and needs.

The Group looks to build and grow a portfolio of equity stakes and licence income by taking an active involvement in spin-out companies, including support for fund raising and collaboration with relevant industry partners at an early stage of development.