UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the Month of October 2023
Commission File Number: 001-38104
IMMURON LIMITED
(Name of Registrant)
Level 3, 62 Lygon Street, Carlton South,
Victoria, 3053, Australia
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form
40-F ☐
Indicate by check mark whether by furnishing the information contained
in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes ☐ No
☒
If “Yes” is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b): 82-
IMMURON LIMITED
EXPLANATORY NOTE
Immuron Limited (the “Company”) published
one announcement (the “Public Notices”) to the Australian Securities Exchange on October 23, 2023 titled:
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“Notice of Annual General Meeting/Proxy Form” |
A copy of the Public Notice is attached as an exhibit to this report
on Form 6-K.
This report on Form 6-K (including the exhibit
hereto) shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be
expressly set forth by specific reference in such filing.
EXHIBITS
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
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IMMURON LIMITED |
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| Date: October 23, 2023 |
By: |
/s/ Phillip Hains |
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Phillip Hains |
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Company Secretary |
3
Exhibit 99.1
IMMURON LIMITED
ACN 063 114 045
(ASX code: IMC, NASDAQ code: IMRN)
NOTICE OF 2023
ANNUAL GENERAL MEETING AND
EXPLANATORY MEMORANDUM
Date and Time of Meeting:
21 November 2023 at 10.00 am
Place of Meeting:
The Offices of K & L Gates,
Level 25, Rialto South Tower,
525 Collins Street Melbourne, Victoria
And virtually at
https://bit.ly/IMCAGM2023
If Shareholders are unable to attend
the Meeting in person or using the online platform they are encouraged to return the proxy form to the Company in accordance with the
instructions thereon.
Returning the proxy form will not
preclude a Shareholder from attending and voting at the Meeting in person or utilising the online platform should they elect to do so.
This
Notice of Annual General Meeting and Explanatory Memorandum should be read in its entirety. If you are in doubt as to how to vote on any
of the Resolutions, you should seek advice from your accountant, solicitor or other professional adviser without delay.
IMMURON LIMITED
ACN 063 114 045
Notice of 2023 Annual General Meeting
Notice is given that a general meeting of the
shareholders of Immuron Limited ACN 063 114 045 (Company or Immuron) will be held at the offices of the Offices of K
& L Gates, Level 25, Rialto South Tower, 525 Collins Street Melbourne, Victoria and by webcast at https://bit.ly/IMCAGM2023
on Tuesday, 21 November 2023 at 10.00 am (Melbourne time) for the purpose of considering and if thought fit passing the resolutions as
stated below.
Webcast meeting
details
To register to attend the webcast meeting, please
click this link: https://bit.ly/IMCAGM2023.
After registering, you will receive a confirmation
email containing information about joining the Meeting. A guide to registration and voting is available here https://bit.ly/AGMMeetingGuide.
To participate in the webcast meeting you will need
a desktop or mobile/tablet device with internet access. When you log onto the online platform to register to attend the AGM, you will
need to provide your details (including SRN or HIN) to be verified as a Shareholder.
Please note that additional information concerning
the proposed resolutions is contained in the Explanatory Memorandum that accompanies and forms part of this Notice of Annual General Meeting.
Voting Exclusions to some the following resolutions appear below and are deemed to form part of this Notice.
Financial statements
and reports
To receive and consider the financial
statements and the reports of the Directors and of the Auditors for the year ended 30 June 2023.
Resolution 1:
Adoption of Remuneration Report
To consider and, if thought fit, pass
the following resolution as an ordinary resolution:
“That the Remuneration Report
for the year ended 30 June 2023 as set out in the Company’s Annual Report for the year ended 30 June 2023 be adopted.”
*Please
note that section 250R(3) of the Corporations Act 2001 (Cth) provides that the vote on this resolution is advisory only and does not bind
the Directors or the Company
Resolution 2:
Re-election of Dr Roger Aston
To
consider and, if thought fit, to pass the following resolution as an ordinary resolution:
“That pursuant to the Company’s
Constitution and for all other purposes, the members of the Company approve the re-election of Dr Roger Aston as a Non-Executive Director
of the Company, who pursuant to clause 13.3 of the Company’s Constitution is retiring by rotation and being eligible offers himself for
re-election.”
Resolution 3:
Approval of increased placement capacity
To consider and, if thought fit, to pass
the following resolution as a special resolution:
“That pursuant to and in accordance
with ASX Listing Rule 7.1A and for all other purposes, Shareholders approve the increase in the capacity of the Company to issue equity
securities up to 10% of the issued capital of the Company (at the time of the issue) calculated in accordance with the formula prescribed
in Listing Rule 7.1A.2 and on the terms and conditions stated in the Explanatory Memorandum which accompanies and forms part of this Notice
of Meeting.”
A voting exclusion statement in respect
of this Resolution is set out below.
Resolution 4: Approval
to Amend Constitution - Employee share scheme provisions
To consider and, if thought fit, to pass
the following resolution as a special resolution:
“That pursuant to sections 136(2)
of the Corporations Act and for all other purposes, the existing constitution of the Company be amended with respect to the Employee Share
Scheme provisions, as detailed in the Explanatory Memorandum which accompanies this Notice of Meeting”
Resolution 5:
Approval of Omnibus Incentive Plan
To
consider and, if thought fit, to pass the following resolution as an ordinary resolution:
“That the shareholders approve
the Company’s Omnibus Incentive Plan for the purposes of ASX Listing Rule 7.2 Exception 13(b), sections 200B, 200E and 259B(2) of the
Corporations Act 2001, and for all other purposes, as laid before the meeting, a copy of which is available for inspection at the registered
office of the Company (during normal business hours).”
A voting exclusion statement in respect
of this Resolution is set out below.
Resolution 6
Approval of the Issue of Options to Mr Paul Brennan
To
consider and, if thought fit, pass the following resolution as an ordinary resolution:
“That, for the purposes of ASX
Listing Rule 10.14 and for all other purposes, shareholders approve the issue of 1,000,000 Options to Mr Paul Brennan on the terms and
conditions set out in the Explanatory Statement which accompanies and forms part of this Notice of Meeting.”
A voting exclusion statement in respect
of this Resolution is set out below.
By order of the Board
Phillip Hains
Company Secretary
23 October 2023
Voting Exclusion Statement
Corporations Act
Resolution 1 - The Company will disregard votes cast
by a member of the Key Management Personnel details of whose remuneration are included in the Remuneration Report, or a closely related
party of such a member, in contravention of section 250R or 250BD Corporations Act. Restrictions also apply to votes cast as proxy unless
exceptions apply.
For the purposes of section 224 Corporations Act,
the Company will not disregard a vote if:
| (a) | it is cast by a person as a proxy appointed in writing that specifies how the proxy is to vote on the proposed
resolution; and |
| (b) | it is not cast on behalf of a related party or associate of a related party of the Company to whom the resolution
would permit a financial benefit to be given or an associate of such a related party. |
Listing Rules
In accordance with the Listing Rule 14.11, the Company
will disregard votes cast in favour of the resolution by or on behalf of:
| Resolution 3: Approval of increased placement capacity |
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(a) if at the time the
approval of Resolution 3 is sought the Company is proposing to make an issue of securities under rule 7.1A.2, any person who is
expected to participate in, or who will obtain a material benefit as a result of, the proposed issue (except a benefit solely by
reason of being a holder of ordinary securities in the Company; or
(b) an
associate of such a person. |
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| Resolution 5: Approval of Omnibus Incentive Plan |
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(a) any person who is eligible to participate in the
employee incentive scheme; or
(b) an
associates of those persons. |
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| Resolution 6 Approval of the Issue of Options to Mr Paul Brennan |
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(a) any person referred to in Listing Rules 10.14.1, 10.14.2 or 10.14.3 who is eligible to participate in this employee incentive scheme; or
(b) an associates of those persons. |
However, this does not apply to a vote cast in favour
of a resolution by:
| (a) | a person as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with
directions given to the proxy or attorney to vote on the resolution in that way; or |
| (b) | the chair of the meeting as proxy or attorney for a person who is entitled to vote on the resolution, in
accordance with a direction given to the chair to vote on the resolution as the chair decides; or |
| (c) | a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary
provided the following conditions are met: |
| (i) | the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from voting,
and is not an associate of a person excluded from voting, on the resolution; and |
| (ii) | the holder votes on the resolution in accordance with directions given by the beneficiary to the holder to
vote in that way. |
VOTING ENTITLEMENT NOTICE
For the purposes of the
Meeting, the Company has determined that in accordance with regulation 7.11.37 of the Corporations Regulations, shares will be taken to
be held by the persons registered as holders at 10.00 am (Melbourne time) on 19 November 2023. Accordingly, transfers registered after
that time will be disregarded in determining entitlements to vote at the Meeting.
You may vote by participating in the Meeting
at the above described venue or by appointing an attorney or corporate representative to participate in the Meeting and vote for you.
Alternatively, Shareholders who are entitled to vote at the Meeting may vote by appointing a proxy to participate and vote on their behalf,
using the Proxy Form accompanying this Notice of Meeting or by appointing a proxy online.
If more than one Shareholder
votes in respect of jointly held Shares, only the vote of the Shareholder whose name appears first in the share register will be counted
whether the vote is given personally, by attorney or proxy.
Shareholders wishing to
vote, or their attorneys or in the case of a Shareholder or proxy which is a corporation, corporate representatives, must attend the Meeting
in person at the above described venue to be held at 10.00 am (Melbourne time) on 19 November 2023. It is suggested that participants
attend 15 minutes prior to the time designated for the commencement of the Meeting, if possible, to register and to obtain an voting card.
This Meeting will not be conducted virtually.
Shareholders wishing
to appoint a proxy to vote on their behalf at the Meeting must either complete and sign or validly authenticate the personalised Proxy
Form which accompanies this Notice of Meeting or lodge their proxy online. A person appointed as a proxy may be an individual or a body
corporate.
Proxies are asked to
log in online 15 minutes prior to the time designated for the commencement of the Meeting, if possible, to register and to obtain an voting
card.
Completed Proxy Forms
must be delivered to the Share Registry by 10.00 am (Melbourne time) on 19 November 2023 in any of the following ways:
| (i) | By mail in the enclosed reply-paid envelope (or the self-addressed envelope, for Shareholders whose
registered address is outside Australia) provided to the Share Registry: |
Immuron Limited
C/- Automic Registry Services
GPO Box 5193
Sydney NSW 2001
| (ii) | By email to the Share Registry at meetings@automicgroup.com.au |
| (iii) | Online if you wish to appoint your proxy online, you should do so by visiting https://investor.automic.com.au/#/loginsah
and following the instructions on that website. Online appointments of proxies must be done by 10.00 am (Melbourne time) on 19 November
2023. |
C/- Automic Registry Services
Level 5, 126 Phillip Street
Sydney NSW 2000
A proxy need not be a Shareholder.
If you appoint a proxy and subsequently
wish to attend the meeting yourself, the proxy will retain your vote and you will be unable to vote yourself unless you notify the registrar
of the revocation of your proxy appointment before the commencement of the Meeting. You may notify the registrar by calling 1300 288 664
(within Australia) or +61 2 9698 5414 (overseas).
If a proxy appointment is signed by a Shareholder
but does not name the proxy or proxies in whose favour it is given, the Chairman will act as proxy.
You are entitled to appoint up to two proxies
to participate in the meeting and vote on a poll. If you appoint two proxies you must specify the percentage of votes or number of securities
for each proxy, otherwise each proxy may exercise half of the votes. When appointing a second proxy you must specify the names of each
proxy and the percentage of votes or number of securities for each proxy on the Proxy Form. Replacement Proxy Forms can also be obtained
from the Share Registry.
If you hold Shares jointly with one or more
other persons, in order for your proxy appointment to be valid, each of you must sign the Proxy Form.
If a Shareholder nominates the chairman
of the Meeting as that Shareholder’s proxy, the person acting as chairman of the Meeting must act as proxy under the appointment in respect
of any or all items of business to be considered at the Meeting.
If a proxy appointment is signed or validly
authenticated by that Shareholder but does not name the proxy or proxies in whose favour it is given, the Chairman of the Meeting will
act as proxy in respect of any or all items of business to be considered at the Meeting.
Proxy appointments in favour of the Chairman
of the Meeting, the Company Secretary or any Director which do not contain a direction as to how to vote will be voted in favour of the
resolution at the Meeting.
The Chairman intends to vote undirected
proxies of which the chair is appointed as proxy in favour of the resolutions.
If you wish to appoint an attorney to vote
at the Meeting, the original or a certified copy of the power of attorney under which the attorney has been appointed must be received
by the Share Registry no later than 10.00 am (Melbourne time) on 19 November 2023 (or if the Meeting is adjourned or postponed, no
later than 48 hours before the resumption of the Meeting in relation to the resumed part of the Meeting).
Any power of attorney granted by a Shareholder
will, as between the Company and that Shareholder, continue in force and may be acted on, unless express notice in writing of its revocation
or the death of the relevant Shareholder is lodged with the Company.
Your appointment of an attorney does not
preclude you from logging in online and participating and voting at the Meeting. The appointment of your attorney is not revoked merely
by your participation and taking part in the Meeting, but if you vote on a resolution, the attorney is not entitled to vote, and must
not vote, as your attorney on that resolution.
| (f) | Voting by corporate representative |
To vote by corporate representative at
the Meeting, a Shareholder or proxy who is a corporation should obtain a Certificate of Appointment of Corporate Representative from
the Share Registry, complete and sign the form in accordance with the instructions on it. The completed appointment form should be lodged
with the Share Registry before 10.00 am (Melbourne time) on 19 November 2023.
The appointment of a representative may
set out restrictions on the representative’s powers. The appointment must comply with section 250D of the Corporations Act.
The original Certificate of Appointment
of Corporate Representative, a certified copy of the Certificate of Appointment of Corporate Representative, or a certificate
of the body corporate evidencing the appointment of a representative is prima facie evidence of a representative having been appointed.
IMMURON LIMITED
ACN 063 114 045
Explanatory Memorandum
This Explanatory Memorandum has been prepared
for the information of Shareholders in connection with the business to be conducted at the Annual General Meeting of Shareholders to be
held at 10.00 am (Melbourne time) on Monday 21 November 2023 (Meeting).
The Corporations Act requires the Company
to provide before the Annual General Meeting, the Financial Report, Directors’ report (including the Remuneration Report) and the Auditor’s
Report for the financial year ended 30 June 2023.
Shareholders will be offered the opportunity
to discuss the Financial Report, Directors’ Report and Auditor’s Report at the Meeting. Copies of these reports can be found
on the Company’s website www.immuron.com.au.
There is no requirement for Shareholders
to approve the Financial Report, Directors’ Report and Auditor’s Report. Shareholders will be offered the following opportunities:
| (a) | discuss the Annual Report for the financial year ended 30 June 2023; |
| (b) | ask questions or make comments on the management of the Company; and |
| (c) | ask the auditor questions about the conduct of the audit and preparation and content of the Auditor’s
Report. |
In addition to taking questions at the
Annual General Meeting, written questions to the Chairman about the management of the Company, or to the Company’s auditor about:
| (a) | the preparation and content of the Auditor’s Report; |
| (b) | the conduct of the audit; |
| (c) | accounting policies adopted by the Company in relation to the preparation of the financial statements;
and |
| (d) | the independence of the auditor in relation to the conduct of the audit, |
may be submitted no later than 5 business
days before the Annual General Meeting to the Company Secretary at the Company’s registered office.
| 2. | Resolution 1: Adoption of Remuneration Report |
Under the Corporations Act, listed entities
are required to put to the vote a resolution that the Remuneration Report section of the Directors’ Report be adopted. This Remuneration
Report can be found in the Company’s 2023 Annual Report. It sets out a range of matters relating to the remuneration of Directors,
the Company Secretary and senior executives of the Company.
A vote on this resolution is advisory
only and does not bind the Directors or the Company. A copy of the Company’s 2023 Annual Report can be found on its website at www.immuron.com.au.
The Corporations Act provides that:
| (a) | members of the Key Management Personnel whose remuneration details are included in the Remuneration Report
(and any closely related party of those members) are not permitted to vote on a resolution to approve the Remuneration Report, and |
| (b) | if the vote to approve the Remuneration Report receives a “no” vote by at least 25% of the
votes cast, this will constitute a “first strike”. |
The Company’s current “strike”
count is zero. If a “first strike” was to occur at the 2023 Annual General Meeting:
| (c) | the Company’s subsequent Remuneration Report (in other words, the Company’s Remuneration Report
to be included in the 2023 Annual Report) must include an explanation of the Board’s proposed action in response to a 2023 “no
vote” or an explanation of why no action has been taken; and |
| (d) | if the Company’s subsequent (i.e. 2023) Remuneration Report also receives a “no vote”
at the 2023 Annual General Meeting of at least 25% of the votes cast, then Shareholders at the 2023 Annual General Meeting will be asked
(at that 2023 Annual General Meeting) to vote on whether or not the Company is to hold another general Shareholder’s meeting (within
the following 90 days) to vote on a “spill resolution” under section 250V of the Corporations Act. |
As set out in the Notice of Meeting,
any member of the Key Management Personnel whose remuneration details are included in the Remuneration Report, together with a closely
related party of those members, are excluded from casting a vote on Resolution 1.
Accordingly, the Board abstains from
making a recommendation in relation to Resolution 1. The Chairman intends to exercise all undirected proxies in favour of Resolution 1.
| 3. | Resolution 2: Re-election of Dr Roger Aston |
Clause 13.3 of the Company’s Constitution
provides that no Director may hold office for a period in excess of 3 years, or beyond the third annual general meeting following the
Director’s election, whichever is the longer, without submitting himself for re-election.
Dr Roger Aston was re-elected as a Non-Executive
Director on 29 October 2020, being eligible, offers himself for re-election.
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Dr Roger Aston Non-Executive Director
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| Appointment
date |
20
March 2012 |
| Qualifications |
BSc
(Hons) and PhD. |
| Experience |
Dr.
Roger Aston has been a member of the board of directors and the board’s Independent
Non-Executive Chairman since March 2012. He has recently transitioned to his role as an Independent
Non-Executive Director, effective from 1 July 2023.
He has more than 20 years’
experience in the pharmaceutical and biotechnology industries. Dr Aston was previously the chief executive officer and a director
of Mayne Pharma Group Limited (ASX: MYX). Prior to his position at Mayne Pharma, some of his previous positions have included chief
executive officer of Peptech Limited (ASX: PTD), director of Cambridge Antibody Technology Limited (LSE: CAT and NASDAQ: CATG) and
chairman of Bio Focus Plc (formerly: Cambridge Drug Discovery Limited). Dr Aston was also founder and chief executive officer of
Biokine Technology Ltd (UK) prior to its acquisition by the Peptech Group. Dr Aston was also a director of Sivida Ltd.
During the past 20 years of his
career, Dr Aston has been closely involved in the development of many successful pharmaceutical and biotechnology companies. He has
extensive experience including negotiating global license agreements, overseeing product registration activities with the FDA, the
establishment and implementation of guidelines and operating procedures for manufacturing and clinical trials, overseeing manufacturing
of human and veterinary products, private and public fund-raising activities and the introduction of corporate governance procedures |
| Other
current directorships |
Pharmaust
Limited (ASX: PAA) since August 2013. |
| Special
responsibilities |
Member
of the audit and risk committee and chair of the remuneration committee until 30 June 2023. |
The Directors (other than Dr Aston) recommend
that Shareholders vote in favour of this Resolution 2. The Chairman intends to exercise all undirected proxies in favour of Resolution
2.
| 4. | Resolution 3: Approval of increased placement capacity |
ASX Listing Rule 7.1A enables eligible
entities, after obtaining shareholder approval by special resolution at an annual general meeting, to issue equity securities up to 10%
of its issued share capital through placements over a 12 month period after the annual general meeting (10% Placement Facility).
The 10% Placement Facility is in addition to the Company’s 15% placement capacity under Listing Rule 7.1. This Resolution 3 seeks approval
to allow the Board the flexibility to issue additional Shares if it so decided. The Board may decide not to issue any Shares pursuant
to this Resolution 3.
An eligible entity for the purposes of
Listing Rule 7.1A is an entity that is not included in the S&P/ASX 300 Index and has a market capitalisation of $300 million or less.
The Company is an eligible entity.
The Company is now seeking shareholder
approval by way of a special resolution to have the ability to issue equity securities under the 10% Placement Facility.
The exact number of equity securities
to be issued under the 10% Placement Facility will be determined in accordance with the formula prescribed in Listing Rule 7.1A.2.
If this Resolution 3 is not approved
by shareholders then the Company will not have the flexibility of an available additional 10% capacity to issue Shares under the 10% Placement
Facility described in this section 6 of the Explanatory Memorandum. The Company not having the 10% Placement Facility will have no effect
on the Company’s existing Listing Rule 7.1 15% capacity.
| 4.2 | Description of Listing Rule 7.1A |
Any equity securities issued under the
10% Placement Facility (Placement Securities) must be in the same class as an existing quoted class of equity securities of the
Company. The Company, as at the date of the Notice, has on issue one class of quoted equity securities, being ordinary shares (Shares).
Resolution 3 is a special resolution
and therefore requires approval of 75% of the votes cast by Shareholders present and eligible to vote (in person, by proxy, by attorney
or, in the case of a corporate Shareholder, by a corporate representative).
Eligible entities which have obtained
Shareholder approval at an annual general meeting may issue or agree to issue, during the 12 month period after the date of the annual
general meeting, a number of Placement Securities calculated in accordance with the formula in Listing Rule 7.1A.2.
The effect of Resolution 3 will be to
allow the Directors to issue the Placement Securities under Listing Rule 7.1A during the 10% Placement Period (as defined below) without
using any of the Company’s 15% placement capacity under Listing Rule 7.1.
| 4.3 | Specific information required by Listing Rule 7.3A |
Pursuant to and in accordance with Listing
Rule 7.3A, information is provided in relation to the approval of the 10% Placement Facility as follows:
| (a) | Period for which approval will be valid |
Shareholder approval of the 10% Placement
Facility under Listing Rule 7.1A is valid from the date of the annual general meeting at which the approval is obtained and expires on
the earlier to occur of:
| (i) | the date that is 12 months after the date of the annual general meeting at which the approval is obtained; |
| (ii) | the time and date of the Company’s next annual general meeting; or |
| (iii) | the time and date of the approval by shareholders of a transaction under Listing Rules 11.1.2 (a significant
change to the nature or scale of activities) or 11.2 (disposal of main undertaking), or such longer period if allowed by ASX |
(10% Placement Period).
If any Placement Securities are issued,
the minimum price the Placement Securities will be issued for cash consideration which is not less than 75% of the VWAP of equity securities
in the same class calculated over the 15 trading days on which trades in that class were recorded immediately before:
| (i) | the date on which the price at which the Placement Securities are to be issued is agreed; or |
| (ii) | if the Placement Securities are not issued within 10 trading days of the date in paragraph (i) above,
the date on which the Placement Securities are issued. |
The actual number of Placement Securities
that the Company will have capacity to issue under Listing Rule 7.1A will be calculated at the date of issue of the Placement Securities
in accordance with the formula prescribed in Listing Rule 7.1A.2.
| (c) | Maximum Number of Shares to be Issued: |
Listing Rule 7.1A.2
provides that an eligible entity which has obtained a 7.1A mandate may, during the period of the mandate, issue or agree to issue a number
of equity securities (N) equal to the 10% Placement Facility, calculated in accordance with the following formula prescribed in
Listing Rule 7.1A.2:
N = (A x D)
– E
where:
A = is the
number of shares on issue 12 months before the date of the issue or agreement:
| ● | plus the number of fully paid ordinary securities issued in
the relevant period under an exception in Listing Rule 7.2 other than exception 9, 16 or 17, |
| ● | plus the number of fully paid ordinary securities issued in the relevant period on the conversion of convertible
securities within Listing Rule 7.2 exception 9 where: |
| - | the convertible securities were issued or agreed to be issued
before the commencement of the relevant period; or |
| - | the issue of, or agreement to issue, the convertible securities
was approved, or taken under these rules to have been approved, under Listing Rule 7.1 or Listing Rule 7.4, |
| ● | plus the number of fully paid ordinary securities issued in the relevant period under an agreement to
issue securities within Listing Rule 7.2 exception 16 where: |
| - | the agreement was entered into before the commencement of
the relevant period; or |
| - | the agreement or issue was approved, or taken under these
rules to have been approved, under Listing Rule 7.1 or Listing Rule 7.4, |
| ● | plus the number of any other fully paid ordinary securities issued in the relevant period with approval
under Listing Rule 7.1 or Listing Rule 7.4, |
| ● | plus the number of partly paid ordinary securities that became fully paid in the relevant period, |
| ● | less the number of fully paid ordinary securities cancelled in the relevant period. |
(Note: “A”
has the same meaning as in Listing Rule 7.1 when calculating the 15% capacity);
D = 10%;
E = the number
of equity securities issued or agreed to be issued under Listing Rule 7.1A.2 in the relevant period (being the 12 month period immediately
preceding the date of the issue or agreement), where the issue or agreement has not been subsequently approved by holders of ordinary
securities under Listing Rule 7.4;
| (d) | Purposes for which Placement Securities may be issued |
The Company may seek to issue the
Placement Securities as cash consideration for the acquisition of new assets and or other investments, or as cash for general working
capital purposes.
The Company will comply with the disclosure
obligations under Listing Rules 7.1A.4 and 3.10.3 upon issue of any Placement Securities.
| (e) | Effect on existing (non-participating) Shareholders |
If Resolution 3 is approved by Shareholders
and the Company issues Placement Securities under the 10% Placement Facility, the existing Shareholders’ voting power in the Company will
be diluted as shown in the below table. There is a risk that:
| (i) | the market price for the Company’s equity securities may be significantly lower on the date of the issue
of the Placement Securities than on the date of the Annual General Meeting; and |
| (ii) | the Placement Securities may be issued at a price that is at a discount to the market price for the Company’s
equity securities on the issue date. |
The below table is included for illustrative
purposes and shows the potential dilution of existing Shareholders on the basis of the current market price of the Shares as at 4 October
2023 and the current number of Shares for variable “A” (above) calculated in accordance with the formula in Listing Rule 7.1A.2
as at the date of this Notice.
The table also shows:
| (i) | Two examples where variable ‘A’ has increased by 50% and 100%. Variable ‘A’ is
based on the number of Shares the Company has on issue as at the date of this Notice of Meeting. The number of Shares on issue may increase
as a result of issues of Shares that do not require Shareholder approval (for example, a pro rata entitlements issue or scrip issued under
a takeover offer) or future specific placements under Listing rule 7.1 that are approved at a future shareholders’ meeting; and |
| (ii) | Two examples where the issue price of the Shares has decreased by 50% and increased by 50% as against
the current market price. |
The table has been prepared on the
following assumptions:
| (i) | The Company issues the maximum number of Placement Securities available under the 10% Placement Facility. |
| (ii) | The 10% voting dilution reflects the aggregate percentage dilution against the issued share capital at
the time of issue. This is why the voting dilution is shown in each example as 10%. |
| (iii) | The table does not show an example of dilution that may be caused to a particular Shareholder by reason
of placements under the 10% Placement Facility, based on that Shareholder’s holding at the date of the Annual General Meeting. |
| (iv) | The table shows only the effect of issues of Placement Securities under Listing Rule 7.1A, not under the
15% placement capacity under Listing Rule 7.1. |
| (v) | The issue of Placement Securities under the 10% Placement Facility consists only of Shares. |
| (vi) | The issue price is $0.076, being the closing price of the Shares on ASX on 4 October 2023. |
| | |
Dilution | |
| |
| | |
Issue Price | |
| Number of Shares on Issue | |
Shares issued – | | |
$0.038 | | |
$0.076 | | |
$0.114 | |
| (Variable ‘A’ in Listing Rule 7.1A.2)* | |
10% voting dilution | | |
50% decrease | | |
Issue Price | | |
50% increase | |
| | |
| | |
| | |
Funds Raised | |
| Current | |
| 227,798,346 | | |
| 22,779,835 | | |
$ | 865,634 | | |
$ | 1,731,267 | | |
$ | 2,596,901 | |
| 50% increase | |
| 341,697,519 | | |
| 34,169,752 | | |
$ | 1,298,451 | | |
$ | 2,596,901 | | |
$ | 3,895,352 | |
| 100% increase | |
| 455,596,692 | | |
| 45,559,669 | | |
$ | 1,731,267 | | |
$ | 3,462,535 | | |
$ | 5,193,802 | |
| (f) | Company’s share allocation policy |
The Company’s share allocation
policy is dependent on the prevailing market conditions at the time of any proposed issue pursuant to the 10% Placement Facility. The
identity of the allottees of Placement Securities will be determined on a case-by-case basis having regard to the factors including but
not limited to the following:
| (i) | the methods of raising funds that are available to the Company, including but not limited to, issues in
which existing security holders can participate; |
| (ii) | the effect of the issue of the Placement Securities on the control of the Company; |
| (iii) | the financial situation and solvency of the Company; and |
| (iv) | advice from corporate, financial and broking advisers (if applicable). |
The allottees under the 10% Placement
Facility have not been determined as at the date of this Notice of Meeting but may include existing substantial Shareholders and/or new
Shareholders who are not related parties or associates of a related party of the Company.
| (g) | Information under ASX Listing Rule 7.3A.6 |
As at the date of
this Notice the Company has not issued any equity securities under Listing Rule 7.1A.2 in the past 12 months preceding the date of the
AGM.
| (h) | Voting exclusion statement |
A voting exclusion
statement is provided above in this Notice. As at the date of this Notice the Company is not proposing to make an issue of equity securities
under Listing Rule 7.1A.2.
The Directors of the Company believe
that Resolution 3 is in the best interests of the Company and unanimously recommend that Shareholders vote in favour of this Resolution
5. The Chairman intends to exercise all undirected proxies in favour of Resolution 5.
| 5. | Resolution 4: Approval to Amend Constitution - insert employee incentive scheme provisions |
The Board proposes that the Company’s
Constitution be amended to allow for the ability for the Company to increase the 5% issue cap under Part 7.12 of the Corporations Act
in respect of offers for monetary consideration under all the Company’s employee incentive schemes to 10% under certain circumstances,
is specified in a proposed new Clause 22.6(d) to be inserted into the Constitution.
The Directors believe these amendments
are not material nor will they have any significant impact on Shareholders.
A copy of the proposed amended clauses
1.1 and 22.6(d) is set out in Annexure A of this Notice.
A copy of the modified Constitution
is available for review by Shareholders at the Company’s website www.immuron.com.au and at the office of the Company. Shareholders
are invited to contact the Company if they have any queries or concerns.
| 6. | Resolution 5: Approval of Omnibus Plan |
The
Board remains committed to incentivising and retaining all the Company’s Directors, employees and consultants in a manner which
promotes alignment of their interests with shareholder interests, whilst at the same time offering eligible participants market-competitive
remuneration arrangements.
The
Company desires to maintain maximum ability to raise capital in accordance with ASX Listing Rule 7.1, without seeking prior shareholder
approval, and to have the flexibility to be able to issue a range of employee incentives, recognising that different types incentives
may suit different employees at different times and under different circumstances. The Board has adopted one overall plan, an Omnibus
Incentive Plan (Omnibus Plan or Plan), that will allow
the Board the discretion to choose between offering eligible participants incentives referred to in that Plan, including options, shares,
loan funded shares, performance rights, deferred shares and exempt shares. Once approved, any securities issued pursuant to the Omnibus
Plan will not reduce the Company’s capacity under Listing Rule 7.1.
A
summary of the Omnibus Plan is set out in Annexure B to these Explanatory Notes, separated across Parts 1, 2, 3 and 4 of Annexure B.
The
Directors abstain from making a recommendation on Resolution 5 as they are eligible to participate in the Omnibus Plan and therefore have
a potential personal interest in the matter. The Chairman intends to vote undirected proxies in favour of this resolution.
If
this Resolution 5 is approved by Shareholders, the Board will have greater discretion to issue additional equites under the Omnibus Plan
to incentivise and retain Directors, employees and consultants with market-competitive remuneration arrangements in a manner which promotes
alignment of their interests with shareholder interests. At the time of preparing this Notice, there are no plans to issue equites in
additional to those set out in this Notice.
If
this Resolution 5 is not approved by Shareholders then the Company will still be able to issue securities under the Plan as approved by
Shareholders on 15 December 2021, but subject to a cap in the Omnibus Plan on the maximum number of Shares that may be issued in a rolling
3 year period of 5% of the total issued Share capital, rather than the cap of 12.5% as proposed under this Resolution 5.
Listing Rule 7.1 requires shareholder
approval for an issue of equity securities if, over a rolling 12 month period, the amount of equity securities issued (without prior shareholder
approval) is or would be more than 15% of the number of ordinary shares on issue at the start of that 12 month period.
Listing Rule 7.2 exception 13(b) provides
that an issue of securities under an employee incentive scheme does not detract from the available 15% limit under Listing Rule 7.1 if
the issue of securities is made under an employee incentive scheme and that employee incentive scheme was approved by shareholders no
more than three years before the date of issue of the securities. The Omnibus Plan is regarded as an employee incentive scheme for the
purposes of Listing Rule 7.2 and this Resolution 5 seeks Shareholder approval for the Omnibus Plan to meet the 3 year approval requirement.
The Company intends that any issue of
securities under the Omnibus Plan does not detract from the Company’s Listing Rule 7.1 15% entitlement. Accordingly, it is seeking Shareholder
approval in order for the Company to be able to issue securities pursuant to the Omnibus Plan and have those securities qualify under
exception 13(b) to Listing Rule 7.2.
| 6.3 | Information required for Listing Rule 7.2 Exception 13(b) |
Listing Rule 7.2 Exception 13(b) requires
the information detailed in sections (a), (b) and (c) below to be provided to members for approval under this resolution:
| (a) | Summary of terms of Omnibus Plan |
A summary of the terms of the Omnibus
Plan appears in Part 1 of Annexure B, with further summaries of components of the Plan contained in Parts 2, 3 and 4.
A full copy of the Omnibus Plan is available
for inspection on the Company’s website at the following link: www.immuron.com.au/ and at the Company’s registered office.
| (b) | Number of securities issued |
The Company has previously issued no
securities pursuant to the Omnibus Plan.
10,030,000 options and 1,688,839 performance
rights in total have been issued under the Company’s previous corresponding Employees’ Share and Option Plan (ESOP), including
1,430,000 options and 1,688,839 performance rights issued under the previous ESOP since it was last approved by shareholders on 15 December
2021. These volumes are within the limit under the previous ESOP of 10% of the total number of share on issue, being 22,779,835 at the
time of preparing this Notice.
| (c) | The Maximum number of securities proposed to be issued under the Omnibus Plan (following the approval
sought in Resolution 5) |
The aggregate number of securities
(including Options) which may be issued under the ESOP, together with all securities which may be issued under all other employee incentive
schemes, shall not at any time exceed 12.5% of the total number of issued Shares in the Company at the time of issue of the ESP Shares
over a rolling 3 year period. At the time of preparing this Notice, 12.5% represented 28,474,793 equities.
| 6.4 | Termination benefits under the Omnibus Plan |
Section 200B of the Corporations Act
requires shareholder approval by ordinary resolution, and in accordance with the special provisions of s 200E of the Act, in order to
access the exemption from the prohibition on a company giving a person a benefit in connection with that person’s retirement from
an office or position of employment in that company where that person is, or was in the three years prior to his or her retirement, in
a managerial or executive office in that company.
The Omnibus Plan allows the Board, in
its discretion, to accelerate vesting of share entitlements on a retirement, which could constitute a benefit otherwise prohibited under
Section 200B. In order to give the Board flexibility to exercise its discretions under the Plan to the extent that an acceleration of
vesting could be regarded as providing a person a benefit in connection with that person’s retirement from an office or position
of employment (Employment Retirement Benefit), shareholder approval for the purposes of sections 200B and 200E of the Corporations
Act 2001 is being sought.
For a section 200B benefit to be allowed,
section 200E requires that this Notice of Meeting provide shareholders with either the value of the proposed benefits or, where the value
of the proposed benefits cannot currently be ascertained, the manner in which the value of the proposed benefits is calculated, and the
matters, events and circumstances that will, or are will likely to, affect the calculation of the value.
| (a) | Value of termination benefits |
The Board has not determined that it
will exercise discretion to grant any Employment Retirement Benefits. In the circumstances of a possible Employment Retirement Benefit,
the value of the benefits that the Board may give under the Omnibus Plan cannot be determined in advance, as many of the factors that
will or are likely to affect that value will not be known until the time the benefit is decided to be awarded (if at all).
Specifically, the value of an Employment
Retirement Benefits will depend on a number of factors, including the Company’s share price at the time.
| (b) | Further voting restrictions |
Insofar as Resolution 5 could relate
to the provision of an Employment Retirement Benefit, in accordance with the Corporations Act, a vote on Resolution 5 must not be cast
(in any capacity) by or on behalf of any person who may be entitled to receive a benefit in connection with that person’s retirement
from a managerial or executive office in the Company (or any related body corporate), or an associate of that person. However, a person
is entitled to cast a vote if:
| (a) | it is cast by a person as a proxy appointed in writing that specifies how the proxy is to vote on the
resolution; and |
| (b) | it is not cast on behalf of that person or an associate of that person. |
As at the date of this Notice, the Board
has not identified any particular person to receive a benefit in connection with that person’s retirement from a managerial or executive
office in the Company.
| 6.5 | Loans for and security over Shares |
Section 259B(2) of the Corporations Act
permits a Company to take security over its own shares issued pursuant to an employee share scheme under certain conditions, including
where prior shareholder approval of the employee share scheme has been obtained. Accordingly, the Company is seeking shareholder approval
under Resolution 5 in respect of the operation of section 259B(2) of the Corporations Act, for circumstances where the Company elects
to provide an employee assistance in the acquisition of shares in itself, such as providing a loan for the exercise of Plan Options under
the Omnibus Plan, and takes security over its own shares for repayment of the loan.
Section 260A of the Corporations Act
allows only limited circumstances under which a company may provide financial assistance for the acquisition of shares in itself without
obtaining prior shareholder approval, including pursuant to Section 260A(1) the giving of the assistance which does not materially prejudice
(i) the interests of the company or its shareholders, or (ii) the company’s ability to pay its creditors. The Board is of the view that
the Section 260A(1) exemption is applicable, and at the relevant times will be applicable, to any loans that may be granted for the exercise
of Plan securities under the Omnibus Plan. Accordingly the Company will not be seeking shareholder approval with respect to Section 260A
of the Corporations Act.
The
Directors abstain from making a recommendation on Resolution 5 as they are eligible to participate in issues under the Omnibus Plan and
therefore have a potential personal interest in the matter. The Chairman intends to vote undirected proxies in favour of this resolution.
| 7. | Resolution 6 - Issue of Options to Mr Paul Brennan |
Subject to shareholder approval of this
Resolution 6, the Board has decided to issue to Paul Brennan 1,000,000 Options under the Company’s Omnibus Plan, with an exercise price
of $0.25 (which is equivalent to a ~230% premium to the Company’s Share price as at 4 October
2023), an Expiry Date of 4 years from their date of approval and shall otherwise be issued subject to the Option Terms and Conditions
(a copy of which is attached as Annexure B Part 3 to this Notice) (PB Options).
The 1,000,000 PB Options
have been valued by the Company at approximately $50,000 by the Company using the Black and Scholes valuation method. Mr Brennan does
not currently own any other securities in the Company.
Where shareholders
do not approve the issue of the PB Options under Resolutions 6, the Company will not issue the PB Options to Mr Brennan at this time and
has no commitment to Mr Brennan to provide any compensation if this Resolution 6 is not passed.
The Company will not be seeking quotation
of the PB Options on the ASX as a separate class of listed securities.
Pursuant to the Corporations Act 2001
(Cth), the provision of any financial benefit to a related party requires shareholder approval in accordance with the procedure set
out in Part 2E.1 of that Act, unless one of a number of exceptions applies. Part 2E.1 applies to the issuance of securities to a related
party by the Company to a related party. A “related party” (as defined in the Act) includes the Directors of the Company and
their controlled entities.
With respect to Resolution 6, the Board
is of the view that the Options proposed to be issued would be issued upon terms that would meet both the “arm’s length terms”
and the “reasonable remuneration” criteria of Section 210 of the Corporations Act (and would therefore be exempt from
the need to seek shareholder approval pursuant to the Corporations Act).
In addition, ASX Listing Rule 10.14 provides
that a listed company must not, without the approval of ordinary shareholders, issue equity securities under an employee incentive plan
(such as the Omnibus Plan) to a related party. A “related party” (as defined in the ASX Listing Rules) includes the directors
of the listed company and their controlled entities. The Company is seeking approval pursuant to ASX Listing Rule 10.14
ASX Listing Rule 10.15 requires that
the notice of meeting in relation to a proposed resolution to approve an issue of securities under Listing Rule 10.14, include the following
information:
| (a) | The name of the person to whom the securities will be issued and Listing Rule 10.14 category: |
Mr Paul Brennan,
Director, and therefore related party, of the Company (Listing Rule 10.14.1 applies).
| (b) | The number and class of securities to be issued to the person: |
Mr Brennan, will be issued a total
of 1,000,000 unlisted Options to purchase Shares.
| (c) | The details of Mr Brennan’s current total remuneration package are: |
The total annual
remuneration package for Mr Brennan for financial year 2023/24 is $150,000 per annum for director and committee fees (exclusive of statutory
superannuation)
| (d) | The following securities have previously been issued to Mr Brennan under the Plan. |
Nil securities.
| (e) | The date by which the entity will issue the securities: |
No later than 1 month after the date
of this Annual General Meeting.
| (f) | The issue price of the securities: |
No funds will be received by the Company
upon the issue of the PB Options. However, should Mr Brennan exercise all the PB Options, he will have to subscribe a total of $250,000.
| (g) | A summary of the material terms of the Employee Share Plan |
A summary of the material terms of
the Omnibus Plan is set out in Annexure B of this Notice, and in particular, Part 3 of Annexure B. Each PB Option has an exercise price
of $0.25 and Expiry Date of 4 years from their date of approval and shall otherwise be issued subject to the Option Terms and Conditions.
| (h) | A summary of the material terms of the loan that will be made to Mr Brennan |
Not Applicable - there will be no loan
to Mr Brennan with respect to the issue of the PB Options.
| (i) | Additional Information |
Details of any securities issued under
this scheme will be published in the annual report of the Company relating to the period in which the above securities are issued, along
with a statement that approval for the issue was obtained under Listing Rule 10.14. Any additional persons covered by Listing Rule 10.14
who become entitled to participate in an issue of securities under this scheme after this resolution is approved and who were not named
in the notice of meeting will not participate until approval is obtained under that rule.
If approved, the issue of the PB Options
does not result in Mr Brennan having a relevant interest in the capital of the Company, unless he subsequently exercised the PB Options.
Approval of this issue of securities
pursuant to Listing Rule 10.14 means that pursuant to Listing Rule 7.2 (Exception 14), member approval is not required under Listing Rule
7.1 to the issue of the 1,000,000 Options to Paul Brennan.
The
Board of Directors (other than Mr Paul Brennan) unanimously recommends that shareholders vote in favour of Resolution 6. Mr Paul Brennan
abstains from making a recommendation due to his personal interest in the outcome of the Resolution.
The
Chair intends to vote all undirected proxies in favour of Resolution 6.
The Directors are not aware of any other
information which is relevant to the consideration by members of the proposed Resolutions set out in this Notice of Meeting.
The Directors recommend members read
this Explanatory Memorandum in full and, if desired, seek advice from their own independent financial or legal adviser as to the effect
of the proposed resolutions before making any decision in relation to the proposed Resolutions.
Glossary
Definitions
The following definitions are used in the Notice
of Meeting and the Explanatory Memorandum:
Annual General Meeting / AGM means the
annual general meeting of the Company to be held at the offices of the Offices of CFO Solutions, Level 2, 62 Lygon Street Carlton South,
Victoria on Monday, 21 November 2023 at 10.00am pursuant to the Notice of Meeting.
ASX means ASX Limited ACN 008 624 691.
ASX Listing Rules or Listing Rules
means the Listing Rules of the ASX as amended from time to time.
Board means the board of Directors of the
Company.
Company means Immuron Limited ACN 063 114
045.
Corporations Act or Act means the Corporations
Act 2001 (Cth).
Director means a director of the Company.
Explanatory Memorandum means the explanatory
memorandum attached to this Notice.
Key Management Personnel or KMP means the
key personnel as disclosed in the Remuneration Report.
Meeting means the annual general meeting
subject to this Notice.
Notice of Meeting or Notice means
this notice of Annual General Meeting.
Proxy Form means the proxy form accompanying
the Notice.
Remuneration Report means the remuneration
report of the Company for the year ended 30 June 2023 as set out in the Company’s Annual Report for the year ended 30 June 2023.
Resolution means the resolutions referred
to in the Notice of Meeting.
Share means a fully paid ordinary share
in the capital of the Company.
Share Registry means Automic Registry Services.
Shareholder means a holder of a Share.
Annexure A - Amendments to the Company’s Constitution
Proposed Changes to the Company’s Constitution:
A new defined term is added to clause 1.1 and
a new Clause 22.6(d) is inserted to allow the Company to increase the 5% issue cap to 12.5% under Part 7.12 of the Corporations Act in
respect of offers for monetary consideration under all the Company’s employee incentive schemes
| (i) | the following definition is added to Section 1.1 Definitions |
“ESS Interests has
the meaning under section 1100M(1) of the Act.”
| (ii) | the following is added as a new Clause 22.6(d) |
“(d) For the purposes of
section 1100V(2)(a) of the Corporations Act, the Company may only make an offer of ESS Interests if, at the time the offer is made, the
Company reasonably believes:
(i) the total number of Shares that
are, or are covered by, the ESS Interests of the Company that may be issued under the offer; and
(ii) the total number of Shares
that are, or are covered by, the ESS Interests that have been issued, or could have been issued, under offers made under the Company’s
employee share scheme at any time during the 3 year period ending on the day the offer is made,
does not exceed 12.5% of the number
of Shares actually on issue as at the start of the day the offer is made. For the purposes of this Constitution, a share incentive plan
includes an ESS Interest.”
Annexure B - Omnibus Plan Summary
Part 1- General Omnibus Plan Terms
A summary of the terms of each of the constituent
awards under the Omnibus Incentive Plan (Plan) is as follows:
Only those Employees, Directors and Contractors
of the Company invited by the Board, in its absolute discretion, to apply for Awards will be eligible to participate (Eligible Participants).
Types of Award
The Plan Rules allow for the following Awards
to be offered by the Board to Eligible Participants:
| (a) | a Loan Share, by which the Company may provide an Acquisition Loan in relation to Loan Shares by
making a loan to a Participant on the terms set out in an Offer and in the Plan Rules - refer Part 2 below for further detail; |
| (b) | an Option - a right to acquire a newly issued Share in the Company subject to achievement of specified
vesting conditions and payment of the relevant exercise price - refer Part 3 below for further detail; |
| (c) | a Performance Right to acquire a Share issued in the Company subject to achievement of the specific
performance-based vesting conditions - refer Part 4 below for further detail; |
| (d) | a Deferred Share Award, which are Shares issued to Eligible Participants: |
| (i) | who elect to receive Shares in lieu of any wages, salary, director’s fees, or other remuneration; or |
| (ii) | by the Company in its discretion, in addition to their wages, salary and remuneration, or in lieu of any
discretionary cash bonus or other incentive payment; or |
| (e) | an Exempt Share Award may be offered, which are Shares issued for no consideration or at an Issue
Price which is a discount to the Market Price with the intention that up to $1,000 (or such other amount which is exempted from tax under
the Tax Act from time to time) of the total value or discount received by each Eligible Participant will be exempt from tax. |
Offer Letters
Awards will be issued to Eligible Participants
that accept the terms of offer outlined in the letter of offer (Offer Letter). Participation in the Plan is voluntary. The Offer
Letter will detail the following terms (where appropriate):
| (a) | Type of Award to be offered (e.g. Options, Performance rights, etc.); |
| (b) | Number of Awards to be offered; |
| (c) | Exercise period, which will include details of the vesting date or dates and the expiry date; |
| (d) | Exercise price or issue price; |
| (e) | Vesting performance conditions such as the achievement of a particular performance target; |
| (f) | Vesting conditions, such as the requirement to remain a permanent employee; |
| (g) | Disposal restrictions; |
| (h) | Award expiry date, being the date that the terms of offer expire; and |
| (i) | any other matters required to be specified in the Offer by either the Corporations Act or the Listing
Rules. |
Exercising an Award
Exercising the Award is done by providing the
Company with a Notice of Exercise stating the number of Award units to be exercised, and if required, accompanied by payment of the Exercise
Price or acceptance of a loan agreement with the Company, to fund the Exercise Price.
Once a Participant has exercised a vested Award
(including payment of the Exercise Price where required), the Company will issue new Shares to the Participant. If the Company has provided
a loan to the Participant to fund the exercise price, the shares will be issued with disposal restrictions.
General Provisions
Generally, if the Eligible Participant ceased
employment or engagement with the Company the below will apply. See Parts 1, 2 or 3 below for more detail:
| (a) | Unvested Options and Performance Rights lapse on the date of the date of cessation |
| (b) | Upon cessation the Holder has 6 months to exercise your vested Options and/or Performance Rights, failing
which vested Options and/or Performance Rights will lapse. |
| (c) | outstanding loans by the Company (for the acquisition of Loan Plan Shares) are to be repaid within 30
days of cessation of employment. |
A Holder cannot vote in respect of Options and
Performance Rights held under the Plan. Holders can vote in respect of Shares acquired under the Plan, including upon the exercise of
vested Options and Performance Rights.
Subject to further detail contained in Parts 1, 2
or 3 below, in general:
| (a) | Options and Performance Rights |
| (i) | may be subject to restrictions until they are exercised or expire. |
| (ii) | may specify a Restriction Period for Shares issued on their exercise. |
| (iii) | are subject to adjustment where there is a reorganisation of capital of the Company (other than by way
of a bonus issue or issue for cash) to the extent necessary to comply with the Listing Rules as they apply at the relevant time (Reorganisation
Adjustment). |
| (i) | may be subject to restrictions until Vesting Conditions are satisfied and the Loan is repaid or satisfied;
and |
| (ii) | Loan and security terms apply. |
Unless a different
Restriction Period is specified in an Offer, the Restriction Period for Deferred Share Awards will expire on the earlier of:
| (i) | when a Participant ceases to be an Eligible Participant; |
| (ii) | when the Board, in its discretion, agrees to end the Restriction Period; and |
| (iii) | 10 years from the date of issue of the Shares. |
Unless a different
Restriction Period is specified in an Offer, the Restriction Period for Exempt Share Awards will expire on the earlier of:
| (i) | three years from the date of issue of the Shares; and |
| (ii) | the time when a Participant ceases to be an Eligible Participant. |
The Company will
offer Exempt Share Awards on a non-discriminatory basis as defined by section 83A-35(6) of the Tax Act.
Dilution Limit
An Offer of Awards must not be made if the total
of the following:
| (a) | the number of Shares which are the subject of the Offer of Awards; |
| (b) | the total number of Shares which are the subject of any outstanding Offers of Awards; |
| (c) | the total number of Shares issued during the previous five years under this Plan or any other employee
share scheme extended only to Eligible Participants of the Company (adjusted if necessary in each case for capital reorganisations), but
not including existing Shares transferred to a Participant after having been acquired for that purpose; and |
| (d) | the total number of Shares which would be issued under all outstanding Awards that have been granted but
which have not yet been exercised, terminated or expired, assuming all such Awards were exercised and ignoring any Vesting Conditions, |
but disregarding any Offer made, or Award offered
or issued, or Share issued by way of or as a result of:
| (e) | an offer to a person situated outside Australia at the time of receipt of the offer; |
| (f) | an offer that did not need disclosure to investors because of section 708 of the Corporations Act; or |
| (g) | of offer made under a disclosure document as defined in the Corporations Act, |
would exceed 12.5% of the number of Shares on issue
at the time of the Offer.
Default Vesting Conditions
If vesting conditions or other vesting events are
not specified in an Offer and the Offer does not expressly state to the effect that no vesting conditions apply, the following Vesting
Conditions apply to any Options, Performance Rights or Loan Shares offered under the Plan:
| (a) | the Awards only vest if at the applicable vesting date the Participant either: |
| (i) | remains employed with a Company Group Member, continues to provide consulting services to a Company Group
Member or acts as a director of a Company Group Member (as applicable); or |
| (ii) | ceased to do so before the applicable vesting date in circumstances where the person was a Good Leaver;
and |
| (b) | the Awards vest in equal one-third tranches on the first, second, and third anniversaries of the grant
date of the Awards (or of another date specified in the Offer for this purpose). |
Where, for the purposes of the Plan:
“Good Leaver” means a person
who has ceased to be employed or engaged by the Company or its subsidiary as a result of that person’s:
| (a) | total or permanent disablement, or an illness which persists for at least 3 months, which in either case
prevents the person from carrying out their previous functions as an employee, contractor or director; |
| (d) | other factors determined by the Board in its discretion to constitute sufficient reason to treat the person
as a Good Leaver; |
provided that the Participant has not committed
a material breach of their employment contract or obligations during their employment or engagement with the Company Group.
“Bad Leaver” means a person who
has ceased to be employed or engaged by the Company or its subsidiary, in circumstances where they are not a Good Leaver.
Takeovers and control transactions
If a takeover bid is made to acquire all of the issued
Shares of the Company, or a scheme of arrangement, selective capital reduction or other transaction is initiated which has an effect similar
to a full takeover bid for Shares in the Company, then Participants are entitled to accept the takeover bid or participate in the other
transaction in respect of all or part of their Awards, other than Exempt Share Awards, notwithstanding that a restriction period in respect
of such Awards has not expired. The Board may, in its discretion, waive unsatisfied vesting conditions in relation to some or all Awards
in the event of such a takeover or other transaction.
Ranking
Shares allotted under or on the exercise of an
Award will rank equally in all respects with the then existing issued ordinary fully paid shares in the capital of the Company (except
to the extent any such Shares are subject to a restriction agreement upon issue or in respect to any dividends which shall have been declared
but not yet distributed before the actual exercise of an Option) and will be subject to the provisions of the Constitution of the Company.
Reorganisation Event
If, prior to the exercise of an Award, the Company
undergoes a reorganisation of capital (other than by way of a bonus issue or issue for cash) the terms of the Awards of the Participant
will be changed to the extent necessary to comply with the Listing Rules as they apply at the relevant time.
Annexure B - Omnibus Plan Summary
Part 2 - Loan Share Terms:
The Omnibus Plan empowers the Board to exercise
its discretion to issue fully paid ordinary shares in the Company (Loan Shares) to employees who qualify to participate in the
Plan, upon the basis that the Company advances (Loan) the Participant the funds to purchase the Loan Shares pursuant to the terms
of a secured limited recourse loan agreement between the Participant and the Company (Loan Agreement) and that the Participant
enters a Restriction Agreement with the Company. The Loan Shares may be issued subject to vesting conditions as determined by the Board
in its discretion.
Loan Terms
The key terms of each limited recourse loan (Loan)
provided under the Plan (Loan Terms) are as follows:
| (a) | the Loan may only be applied towards the subscription price for the Loan Shares; |
| (b) | the Loan will be interest free, provided that if the Loan is not repaid by the repayment date set by the
Board, the Loan will incur interest at 9% per annum after that date (which will accrue on a daily basis and compound annually on the then
outstanding Loan balance); |
| (c) | by signing and returning a limited recourse Loan application, the Participant acknowledges and agrees
that the Loan Shares will not be transferred, encumbered, otherwise disposed of, or have a security interest granted over it, by or on
behalf of the Participant, until the Loan is repaid in full to the Company; |
| (d) | the Company has the discretion as to whether it will require the Participant to provide the Company with
security over the Loan Shares as security for repayment of the Loan, which security includes a pledge of the Participant’s Loan Shares
provided under the Plan and a charge over all dividends and other amounts paid or payable on those Loan Shares; |
| (e) | the Participant is required to enter a restriction agreement with the Company (Restriction Agreement)
in accordance with the terms of the Employee Share Plan; |
| (f) | the Loan becomes repayable on the earliest of: |
| (i) | 5 years from the date on which the Loan is advanced to the Participant; |
| (ii) | one month after the date of (A) the Participant’s resignation or cessation of office/engagement/employment
(as the case may be) (other than if the Participant is removed from office), (B) if the Company does not renew the Participant’s employment
agreement or engagement terms, or (C) where the Company dismisses the Participant other than for cause; and |
| (iii) | (by the legal personal representative of the Participant) six months after the Participant ceases to be
an employee of the Company due to their death; |
the earliest date being the Repayment
Date.
| (g) | notwithstanding paragraph (f) above, |
| (i) | the Participant may repay all or part of the Loan at any time before the Repayment Date; and |
| (ii) | the Loan will be limited recourse such that on the Repayment Date the repayment obligation under the limited
recourse loan will be limited to the lesser of the outstanding balance of the limited recourse loan and the market value of the Loan Shares
on that date. |
| (h) | where the Participant has elected for the Loan Shares to be provided to the Company in full satisfaction
of the Loan, the Company must accept a transfer of the Loan Shares by the Participant to, or as directed by the Company, as full settlement
of the repayment obligation under the limited recourse loan. |
Rights attaching to the Loan Shares
The Loan Shares will rank equally with all other
fully paid ordinary shares on issue in the capital of the Company, other than for the provisions of an applicable Restriction Agreement.
Holders of Loan Shares will be entitled to exercise all voting rights attaching to those Shares in accordance with the Company’s constitution.
In addition, holders of Loan Shares will be entitled to participate in dividends declared and paid by the Company in accordance with the
Company’s constitution, but the Company may retain, or pay to itself on behalf of a Participant, any moneys (including dividends) and
any capital distributions that may become payable in respect of a Loan Share in reduction of the amount outstanding under the Loan in
respect of that Loan Share.
Sale of the Loan Shares
The Loan Shares may only be sold by a Participant
(who has been granted a limited recourse loan) where the Loan Shares have vested and the Loan has been repaid in full (otherwise any dealing
by the Participant in the Loan Shares is prohibited without the prior written consent of the Company).
If the Loan becomes due and payable under the Loan
Agreement and the Participant has not repaid the amount of the Loan in full within 21 days of the due date, then the Participant will
forfeit their interest in the Loan Shares as full consideration for the repayment of the outstanding Loan balance (other than any interest
accrued and unpaid on any overdue loan repayment), and the Company may either (at its election) take such action in the Participant’s
name or direct that the Participant take such action in relation to the Loan Shares as the Company considers appropriate, which may include
but is not limited to the Company undertaking a buy-back of the Loan Shares or transferring or selling the Loan Shares. For the purpose
of this sale, the Participant appoints the secretary of the Company (or his or her duly authorised delegate) as their attorney and authorises
them to sell the relevant Loan Shares on behalf of the Participant. The Company and the secretary will have complete discretion in respect
of the sale of the relevant Loan Shares.
Copies of the Employee Share Plan are available for
inspection at the Company’s registered office and will be provided without charge to shareholders on request.
Application Form Terms
The Application for the Loan Shares to be executed
by a Participant includes the appointment by the Participant of the Company to be its attorney under a power of attorney (Power of
Attorney) to perform all acts required on the Participant’s behalf in order
| (a) | to transfer the shares (not yet vested) which are the subject of the Application to a nominee or nominees
of the Company at the Issue Price per Share, or |
| (b) | for the Company to undertake a buy back (at the Issue Price per Share) or capital reduction of those Shares
not yet vested pursuant to the provisions of the Corporations Act 2001, |
upon the basis that the Application Form is an
irrevocable direction to the Company to apply all proceeds that would have otherwise been provided or due to the Participant on a transfer,
buy back or capital reduction solely in satisfaction of the Outstanding Loan Balance (as defined in the Loan Agreement).
The Application Form also contains a vesting condition
that prevails over all other (if any) vesting conditions (Liquidity Event Vesting Condition), namely that all Loan Shares vest
immediately upon the happening of a Liquidity Event (as defined). A “Liquidity Event” is defined as:
| (a) | where a bidder under a takeover offer (as defined in the Corporations Act) has acceptances for more than
50% of the ordinary shares in the Company and there are no unsatisfied conditions (or conditions that not been waived) under the bid,
or |
| (b) | on shareholder approval being obtained for a scheme of arrangement (as defined in the Corporations Act)
with respect to the assets or securities of the Company; or |
| (c) | completion under a contract of sale with a third party purchaser of all, or substantially all, of the
assets and undertaking of the Company. |
Termination benefits under the Plan
The Plan allows the Board, in its discretion and
subject to the Listing Rules, to accelerate vesting of share entitlements on a retirement, for which Shareholder approval has been obtained
where such an acceleration could constitute a benefit otherwise prohibited under Section 200B of the Corporations Act.
Annexure B - Omnibus Plan Summary
Part 3 - Option Terms and Conditions:
Particulars
Participation in the Plan is voluntary. The number
of Options; the Options exercise price and expiry date, any vesting conditions and any applicable restrictions will be determined by the
Board in its absolute discretion and will communicated to any Eligible Participant by way of letter of offer (Offer Letter).
Exercise of Options
The Options may be exercised for part or all of
the Options vested at a particular time by the Option Holder giving written notice, in the required form and specifying the number of
Options to be exercised and the method of exercise (Notice of Exercise) to the Company at its registered office prior to the Expiry
Date.
Options in the Plan may be exercised by either:
| (i) | payment in full of the respective exercise price of the Options
being exercised; or |
| (ii) | by use of the Cashless Exercise Facility described below. |
The Cashless Exercise Facility entitles a Participant
to set-off the cash Exercise Price against the number of Shares which the Participant is entitled to receive upon exercise of the Participant’s
Options. If a Participant elects to use the Cashless Exercise Facility, the Participant will only be issued that number of Shares (rounded
down to the nearest whole number) as are equal in value to the difference between the total Exercise Price otherwise payable in cash for
the Options on the Options being exercised and the then market value of the Shares at the time of exercise (determined as the volume weighted
average prices at which Shares were traded on the ASX over the 5 ASX Business Days immediately preceding the exercise date), calculated
in accordance with the following:
S = O x (MSP – EP)
MSP
Where:
S = Number of Shares to be issued on exercise
of the Options using the Cashless Exercise Facility.
O = Number of Options being exercised.
MSP = Market value of the Shares (calculated using
the volume weighted average prices at which Shares were traded on the ASX over the 5 ASX Business Days immediately preceding the exercise
date).
EP = (Cash) Option Exercise Price.
To the extent the Cashless Exercise Facility is
not utilised, an exercise of any Options will require the full payment of such Exercise Price shall be made in cash for these Options
being exercised, such payment to accompany the Notice of Exercise, and shall be made
| (a) | in cash or bank cheque, or |
| (b) | in any other manner permitted in the discretion of the Board. |
Such Notice of Exercise shall be delivered to
the Company at its principal business office or such other office as the Board may direct, and shall be in such form, containing such
further provisions consistent with the provisions of the Plan, as the Committee may prescribe. No person exercising an Option shall have
any of the rights of a holder of the shares underlying that Option until the date that such ordinary shares are issued following the exercise
of such Option. No adjustment shall be made for cash dividends or other rights for which the record date is prior to the date of such
issuance.
On receipt by the Company of the Notice of Exercise
and payment of the Exercise Price, the Company must, as soon as practicable and if the Shares are listed on the ASX within the time period
prescribed by the Listing Rules of the ASX (ASX Listing Rules):
| (a) | allot to the Option Holder one Share in the Company for each Option exercised by the Option Holder; |
| (b) | cause to be despatched to the Option Holder the relevant acknowledgement of issue, a holding statement or
share certificate (as applicable) as soon as is reasonably practicable detailing the issue of the relevant Share/s; and |
| (c) | issue (if applicable) a new holding statement (or option certificate) for the balance of the Options that
remain unexercised. |
Transfers
The Options are not transferable and are subject
all restrictions, if any, as described in the Offer Letter.
Termination of Employment
If an Eligible Participant’s employment with the
Company or its subsidiaries ceases, then:
| (a) | If that employee is a Good Leaver: |
| (i) | the employee may continue to hold their vested Options and may be able to exercise them on the occurrence
of a future Exit Event, and |
| (ii) | their unvested Options lapse on the date of their termination. |
| (b) | If that employee is a Bad Leaver, then their vested and unvested Options lapse on the date of their termination,
unless the Board, in its sole discretion, determines otherwise. |
Reorganisation
If any reorganisation (including consolidation,
subdivision, reduction, return or cancellation) of the issued capital of the Company occurs before the expiry of any Options, the number
of Options to which each Option Holder is entitled or the Exercise Price of their Options or both must be reorganised in accordance with
the ASX Listing Rules applying to a reorganisation at the time of the reorganisation (which adjustment formula will apply even where the
Company is not admitted to the ASX Official List).
Rights Entitlement
An Option does not confer the right to participate
in new issues of capital offered to holders of Shares (Rights Entitlement) during the currency of the Options without exercising
the Options. However, the Company will use reasonable endeavours to procure that for the purpose of determining Rights Entitlements to
any such issue, the Option Holder is to receive prior notice from the Company of the pending closing or record date and time for the Option
Holder to exercise the Options prior to that closing or record date in order to qualify for the participation in the Rights Entitlement.
The Options do not provide any entitlement to
dividends paid to ordinary shareholders. The Options do not entitle the Option Holder to vote at any meeting of shareholders
Governing Laws
To the extent (if any) that any of these Option
Terms And Conditions are inconsistent with or contrary to the ASX Listing Rules, the ASX Listing Rules provisions will prevail and these
Option Terms And Conditions are deemed to incorporate the relevant ASX Listing Rules provisions as an amendment to these terms.
These Terms and Conditions are governed by the
laws of Victoria. The Company and the Option Holder submit to the non-exclusive jurisdiction of the courts of Victoria.
Annexure B - Omnibus Plan Summary
Part 4 - Performance Rights
The Plan allows Eligible Participants to be granted
performance rights over fully paid ordinary shares in the capital of the Company (Performance Rights). Each Performance Right is
a right to acquire one fully paid ordinary share (Shares) in the capital of the Company at $nil exercise price.
If the Board proposes to grant the Performance
Rights to an Eligible Participant (or their Nominated Parties) (Invitation), it will do so subject to the Company achieving certain
milestones (Milestones). The Milestones, the total $value conditionally allocated (at a fair market value per Share to be determined
upon exercise), the terms of their exercise and their expiry date will be determined by the Board in its absolute discretion (Performance
Rights Terms) and will communicated to any Eligible Participant by way of letter of offer (Offer Letter).
An Eligible Participant is a Director,
consultant or employee of the Company or a subsidiary thereof.
The following is a summary of the key terms and conditions
that apply to all Performance Rights:
Entitlements
A Performance Right does not confer upon the holder
(Holder) the right to
| (a) | receive notices of general meetings and financial reports and accounts of the Company that are circulated
to holders of fully paid ordinary shares in the capital of the Company (Members). |
| (b) | vote or receive dividends. |
| (c) | a return of capital, whether in a winding up, upon a reduction of capital or otherwise. |
| (d) | participate in the surplus profit or assets of the Company upon a winding up; or |
| (e) | participate in new issues of securities such as bonus issues or entitlement issues |
unless and until the applicable
performance milestone is achieved and the Performance Right converts into ordinary shares.
Share ranking
All Shares issued upon exercise of the Performance
Rights will upon issue rank pari passu in all respects with all other Shares.
Transfer / transmission of Performance Rights
A Performance Right may not be transferred or encumbered.
Unless, on the death or legal incapacity of the Holder, the relevant dealing is effected by force of law to the Holder’s legal personal
representative or the Board otherwise determines, a Holder may not dispose of a Performance Right that has been granted to them. The Board
may require that a Performance Right be forfeited if a disposal occurs or is purported to occur other than in accordance with these terms.
Participation in new issues
There are no participation rights or entitlements
inherent in the Performance Rights and holders will not be entitled to participate in new issues of capital offered to Members during
the currency of the Performance Rights.
Adjustment for Reorganisation
If any reorganisation (including consolidation,
subdivision, reduction, return or cancellation) of the issued capital of the Company occurs before the expiry of any Performance Right,
all rights of a holder of a Performance Right (including the exercise conditions) must be reorganised in accordance with the ASX Listing
Rules applying to a reorganisation at the time of the reorganisation (which adjustment formula will apply even where the Company is not
admitted to the ASX Official List).
Exercise of Performance Rights
The exercise of a Performance Right is to be effected
by the Holder completing and returning an exercise notice which will be attached to the Holder’s Offer Letter (Exercise Notice).
Each Performance Right confers upon the Holder the right to be issued a certain number of Shares (as set out in their Offer Letter) following
the achievement of the milestones (also as set out in their Offer Letter) (Milestones). The fair market value of Shares to be issued
will be as determined by the Board in good faith on such basis as it deems appropriate and applied consistently with respect to all Shares,
or another pricing method determined by the Board as at the date the Company receives the Exercise Notice.
Lapse if Milestone not achieved
If the relevant Milestone is not achieved by the
due date as set out in the Offer Letter, then the corresponding Performance Rights will automatically lapse on non-satisfaction of the
Milestone.
Holding Statement
The Company will issue the Holder with a new holding
statement for any Share issued upon exercise of a Performance Right within 10 business days following exercise.
Continued service
A Holder’s entitlement to any Performance Rights
in relation to Milestones that have not been met, ceases upon the date that is 3 months after the Holder ceases to be an Eligible
Participant. For any Milestone met prior to the date of cessation of service, the Holder remains entitled to exercise the relevant Performance
Rights and be issued Shares, regardless of whether the Holder remains an Eligible Participant at the time of exercise. In the event that
a Holder is made redundant, their entitlement to Performance Rights (not yet exercised) will be considered at the discretion of the Board.
Control Events
Performance Rights issued to a Holder may be immediately
exercised and Shares issued to the Holder at the total discretion of the Board if the Company announces its intention to sell all or substantially
all of its business undertakings or assets or if a takeover offer is made for the shares in the Company (subject to that offer becoming
unconditional)
Maximum Conversion
Under no circumstances will the Company issue
any Performance Rights such that if the number of ordinary shares into which the performance rights will convert if the applicable milestones
are achieved is greater than the number of ordinary shares in the Company on the date of issue of the Performance Rights. Where the Company
has options or other convertible securities on issue, the Company cannot issue Performance Rights to the extent that the total number
of ordinary shares that will be issued if the options are all exercised, the convertible securities are all converted and the applicable
milestone is achieved is greater than the number of ordinary shares in the entity on the date of issue of the Performance Rights.
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