Medicalgorithmics S A : Shareholders of Medicalgorithmics have approved an Employee Share Option Plan (ESOP) for key employees and management

At the Extraordinary General Meeting on December 19th, this medtech company, part of the sWIG80 index, set up an incentive program for executives and key staff. The success of this program depends on meeting certain financial and market goals from 2024 to 2026.

The ESOP at Medicalgorithmics, spearheaded by BioFund Capital Management LLC, the company's largest shareholder with a 49.99% stake, aims to align the company's business success with the interests of its shareholders and key managers. The plan sets two main goals: growing the business and increasing the company's stock market value.

According to the plan, in 2024, the company's revenue should hit at least 45 million PLN, then 55 million PLN the next year, and 70 million PLN in 2026. The market goal is tied to the performance of Medicalgorithmics' stock price, which should beat the sWIG80 Total Return index's return rate by at least 10 percentage points each year.

This program is designed for executives and key staff, who are each expected to acquire 50% of the newly issued shares. In total, they could get up to 298,584 Medicalgorithmics shares, which is 3% of the company's share capital. The shares will be priced at 90% of their average market value 90 days before the ESOP's start. The vesting of these shares is deferred for two years post-achievement of the set goals, during which the recipients must stay employed with the company.

"The ESOP will speed up Medicalgorithmics' growth and significantly increase value for our shareholders. In the fast-paced global AI market, having the right technology skills is key. This program will motivate those essential for our technological and business growth and make us a more attractive AI technology employer. By offering shares at just a 10% discount, we're aligning the long-term interests of our shareholders with those crucial to our company's success," says Maciej Gamrot, CFO of Medicalgorithmics.

Medicalgorithmics is a global provider of tech solutions for cardiac diagnostics, using a unique AI system for arrhythmia diagnosis. It's also developing the VCAST system for AI-based imaging diagnosis of coronary disease. Announced in June 2023, Medicalgorithmics' new strategy is to market its EKG signal analysis system, along with its AI, as a standalone product and integrate it with partners' devices and IT systems. The company's software is offered as a service, with various compensation models, including based on the number of EKG data analyses.

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• December 20, 2023