A capital restructure move for financial services group Wealthpoint has cancelled 77.4 million options and led to a board restructure with Chairman Gil Hoskins stepping down from the position.
Of the canceled options, 36.1 million were options held by Hoskins and former board member Wayne Bos. With the substantially reduced potential equity in Wealthpoint Hoskins has resigned his directorship, and Wealthpoint board member and St George executive Richard Cawsey takes over.
Wealthpoint managing director Brett Sanders says simplifying the group’s capital structure enhances the position of its shareholders as the company continues to grow. With the options cancelled, potential fully diluted securities on issue are now reduced by 31 per cent.
Sanders says the capital restructure is also part of development for additional institutional investment in the future. He says St George Bank, who has a strategic stake in Wealthpoint, are enthusiastic about the changes.
Hoskins and Bos’s securities were cancelled for 10 cents per option, resulting in a significant pay out for the pair, with both receiving a figure around $18 million. The remaining 41.3 million options were anti-dilute options held by St George, who agreed to cancel on the condition the Hoskins and Bos options were also cancelled.
