NeuroVive Pharmaceutical AB (publ): Report from AGM

NeuroVive Pharmaceutical AB (publ) held its Annual General Meeting (AGM) yesterday, 28 April 2016. A summary of the resolutions follows. All resolutions were passed with the required majority.

Adoption of Income Statement, Balance Sheet, Consolidated Income Statement, Consolidated Balance Sheet and appropriation of profit and dividend
The Meeting resolved to adopt the presented Income Statement and Balance Sheet, and the Consolidated Income Statement and Consolidated Balance Sheet. The Meeting also resolved to appropriate the company’s profit or loss in accordance with the Board of Directors’ proposal in the Annual Accounts. Additionally, the Meeting resolved that no dividend is paid for the financial year 2015.

Discharge from liability
The AGM resolved to discharge the Board members and Chief Executive Officer from liability.

Determining the number of Board members and Auditors, and determining fees to Board members and Auditors
The Meeting resolved that there be seven Board members and that one Auditor should be appointed. Furthermore, the Meeting resolved that fees to Board members not employed by NeuroVive but elected by the AGM, and members of the Board of Directors’ various Committees not employed by NeuroVive, shall be payable as follows:

The Meeting also resolved that as in the previous year, auditors’ fees are payable in accordance with approved account, on the customary debiting terms. No fees should be payable to Nomination Committee members.

Electing the Board of Directors and Auditors
The AGM decided to re-elect Board members Greg Batcheller, Arne Ferstad, Boel Flodgren, Marcus Keep, Helena Levander and Anna Malm Bernsten. David Laskow-Pooley was new-elected Board member. Greg Batcheller was re-elected as Chair of the Board.

Furthermore, the Nomination Committee proposes that Auditors MAZARS SET Revisionsbyrå AB are re-elected as the Company’s Auditors, for the period until the end of the Annual General Meeting in the fourth financial year after appointment.

Resolution regarding guidelines for remuneration for senior executives
The AGM resolved on guidelines for remuneration for senior executives in accordance with the following:

The guidelines for remuneration and other terms of employment for management imply that the company shall offer its senior executives market compensation, that compensation shall be subject to consultation by a dedicated Remuneration Committee within the Board of Directors, that the relevant criteria shall consist of the senior executive’s responsibility, role, competence and position. Remuneration to senior executives is decided by the Board of Directors, excluding any Board members that are in a position of dependency to the company and management. These guidelines should be applied to new agreements, or amendments to existing agreements reached with senior executives after the guidelines are adopted, and until new, or revised guidelines are set. What is stipulated for NeuroVive applies also to the group, where applicable. This proposal is basically identical to the guidelines approved for remuneration to senior executives in the previous year.
1.       Basic principle
Salary and other remuneration, as well as any share-related incentive programs, shall be on market terms and shall be structured so that NeuroVive can attract and retain competent senior executives.
2.       Fixed remuneration 
Senior executives shall be offered fixed remuneration that is on market terms and based on the senior executive's responsibilities, roll, competence and position. Fixed remuneration shall be subject to annual review.
3.       Variable remuneration 
From time to time, senior executives may be offered variable remuneration. Such variable remuneration shall be on market terms and shall be based on the outcome of predetermined financial and individual targets. The terms and conditions and basis of computation of variable remuneration shall be determined for each financial year. 
 
Variable remuneration is settled in the year after vesting and may either be paid as salary or as a lump-sum pension premium. Payment as a lump-sum pension premium is subject to indexation so the total cost for NeuroVive is neutral. The basic principle is that the yearly variable remuneration portion may amount to a maximum of 30% of fixed annual remuneration.
 
Variable remuneration to senior executives is subject to a total maximum of SEK 1,500,000.
 
When structuring variable remuneration that is payable to management in cash, the Board of Directors should consider introducing provisions such as:
a.     making payment of a predetermined portion of such remuneration conditional so the performance on which vesting is based is demonstrably sustainable over time, and
b.     offers the Company the opportunity to reclaim such remuneration paid on the basis of information that subsequently proves manifestly erroneous.
4.       Non-monetary benefits
Where the Board of Directors considers it appropriate and/or after individual consideration of an overall salary and remuneration structure, a senior executive may be entitled to additional healthcare insurance.
 
5.     Pension
Senior executives are entitled to market-based pension solutions in accordance with collective bargaining agreements and/or agreements with NeuroVive. All pension obligations should be defined contribution. Salary waivers may be utilized to increase pension provisions through lump-sum pension premiums, providing the total cost for NeuroVive is neutral.
 
6.     Notice period
From NeuroVive’s side, the maximum notice period shall be six months for the Chief Executive Officer and a maximum of six months for other senior executives. The notice period from the Chief Executive Officer’s side shall be a minimum of six months, and from other senior executives’ side, shall be a minimum of three months. In addition to this notice period, severance pay subject to a maximum of six months’ salary plus fringe benefits may be payable to the CEO.
7.     The consultative and decision-making process of the Board of Directors 
The Board of Directors' Remuneration Committee consults on proposals for decision regarding salary and other employment terms for senior executives. Remuneration to senior executives is then decided by the Board of Directors, excluding any Board members who are affiliated to the Company and its management.
8.     Share-related incentive programs approved by shareholders’ meetings 
Through its Nomination Committee, the Board of Directors shall consider the need for share-related incentive programs yearly, and where necessary, submit a proposal for resolution to the Annual General Meeting regarding a well-considered share-related incentive program for senior executives and/or other employees. Resolutions regarding any share and share price-related incentive programs targeted at senior executives shall be made by shareholders’ meetings.
9.     Information on previously approved remuneration that is not due for payment 
Approved remuneration totaling SEK 817,000 including social security expenses to the former CEO is not due for payment.
10.   Information on departure from the guidelines resolved by the AGM 
Negotiations in connection with the resignation of former CEO Michael Brönnegård, settled on an extension of the contractual six-month notice period to nine months. The Board of Directors considers that this revision was contained in the scope of its mandate to effect adjustments of pre-determined guidelines in special circumstances. 
11.   Other
The Board of Directors shall be entitled to depart from the above guidelines if the Board of Directors judges that there are special circumstances justifying this in an individual case.
 

Resolution on guidelines for the Nomination Committee
The AGM resolved that the work of the Nomination Committee for the AGM 2017 should be conducted in accordance with the following:

a)     a proposal regarding a Chairman of the Meeting;

b)     a proposal regarding the number of Board members elected by the Annual General Meeting, and where applicable, the number of auditors;

c)      a proposal regarding fees to Board members not employed by the Company, and members of the Board’s various Committees not employed by the Company;

d)     a proposal regarding Audit fees;

e)     a proposal regarding election of the Chairman of the Board and other Board members, and where applicable, election of auditors;

f)      a proposal regarding guidelines for appointing members of the Nomination Committee, and for the duties of the Nomination Committee;

g)     a proposal regarding fees to members of the Nomination Committee.

Authorization for the Board of Directors to decide on the new issue of shares
The Meeting resolved to authorize the Board of Directors to decide on the new issue of shares, with or without waiving the preferential rights of shareholders on one or more occasions in the period until the next Annual General Meeting.

The number of shares issued through this authorization may correspond to an increase of share capital of a maximum of fifteen per cent (15%) of the total share capital of the Company at the time of the Annual General Meeting 2016.

Share issues should be at market subscription price, subject to reservation for a market discount where applicable, and apart from cash, payment may be as assets contributed in kind or through offset, or subject to other terms and conditions.

A new share issue decided with this authorization should be conducted with the aim of raising working capital for the Company. If the Board of Directors decides on a share issue waiving shareholders' preferential rights, the reason should be to raise working capital for the Company and/or for new owners of strategic significance to the Company and/or acquisitions of other companies or operations.

Resolution regarding the incentive program in the subsidiary NeuroVive Asia, Inc.
In order to attract and retain key personnel in its operations, the Company’s subsidiary, NeuroVive Pharmaceutical Asia, Inc. (“NVP Asia”), decided to implement an incentive program in March 2015. The incentive program encompasses a maximum of 1,600,000 warrants, where each warrant confers entitlement to subscribe for one share in NVP Asia, aimed at individuals employed in NVP Asia or its subsidiaries. Upon full allocation and utilization of the warrants, the dilution effect corresponds to approximately 5% of the total number of shares and votes in NVP Asia. NVP Asia and the Company’s Board of Directors consider that personal ownership stimulates the employees’ commitment to the Company’s business.

The allocation of warrants to employees under the program is based on a number of factors, including the employee’s seniority, position, achievements, earlier and anticipated performance as well as potential. The warrants are allocated annually or after achieving specific milestones. The warrants are earned to varying extents over a maximum of six years from the day of allocation and expire in their entirety six years after the day of allocation.

The allocation of warrants is conditional on approval by the AGM.

Each warrant entitles the employee to subscribe for one share in NVP Asia at a subscription price determined by the Board of Directors of NVP Asia in connection with allocation of the warrants. The subscription price may not fall below the market value of the share on the date of allocation.

The costs of the incentive program are limited as the subscription price on utilization of the warrants is above the book value per share in NVP Asia.

The AGM adopted the resolution for the incentive program and transfer of warrants in NVP Asia as outlined above.

The Board of Directors

NeuroVive Pharmaceutical AB (publ)

Lund, Sweden, April 2016

About NeuroVive
NeuroVive Pharmaceutical AB (publ) is a pioneer in mitochondrial medicine and a company committed to the discovery and development of highly targeted candidates that preserve mitochondrial integrity and function in areas of significant therapeutic need. NeuroVive’s business approach is driven by value-adding partnerships with mitochondrial research institutions and commercial partners across the globe. NeuroVive’s portfolio consists of two clinical projects in acute kidney injury (AKI) and traumatic brain injury (TBI) with candidates in clinical and preclinical development and two drug discovery platforms. The NeuroSTAT® product has orphan drug status in Europe and in the US for treatment of moderate to severe traumatic brain injury and is currently being evaluated in a study, CHIC. Ciclosporin (CicloMulsion®) is being evaluated in an on-going study, CiPRICS, in acute kidney injury during major surgery. NeuroVive’s shares are listed on Nasdaq, Stockholm, Sweden.

For investor relations and media questions, please contact:
Christine Tadgell, NeuroVive, Tel: +46 (0)46 275 62 21 or ir@neurovive.com

NeuroVive Pharmaceutical AB (publ)
Medicon Village, SE-223 81 Lund, Sweden
Tel: +46 (0)46 275 62 20 (switchboard), Fax: +46 (0)46 888 83 48
info@neurovive.com, www.neurovive.com

NeuroVive Pharmaceutical AB (publ) is required to publish the information in this news release under The Swedish Securities Market Act. The information was submitted for publication on the 29 April 2016, at 8.30 CET

NeuroVive Pharmaceutical AB (publ) - the mitochondrial medicine company. The company is listed on NASDAQ Stockholm, Small Cap, under the ticker symbol NVP. The share is also traded on the OTC market in the US. NeuroVive Pharmaceutical (OTC: NEVPF) trades on the OTC Pink Market. Investors can find Real-Time quotes and market information for the company at www.otcmarkets.com/stock/NEVPF/quote 




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