Lvqi Culture (00550) announced that the company adopted a stock incentive plan on December 28, 2022...
According to the announcement released by Zhitong Finance APP, Lvqi Culture (00550) adopted a stock incentive plan on December 28, 2022 (the plan), and related matters of the plan.
As of the date of this announcement, the company has not granted any rewards under the plan. Considering that the board of directors has resolved to terminate the plan as of August 9, 2024 (termination) in order to reduce administrative costs and improve the company's cash flow situation, and it is expected that no rewards will be granted under the plan before its expiration on December 27, 2032, the remaining non-cash income in the trust fund must be sold by the trustee within 20 business days after receiving the termination notice (the sale) as required by the trust agreement. After the termination, the net proceeds from the sale, the remaining cash, and the remaining other funds in the trust (after appropriate deductions are made for all sale costs, liabilities, and appropriate expenses as provided in the trust agreement) must be remitted to the company immediately by the trustee (remittance). The company will make arrangements with the trustee for the remittances (if any) in the trust after the termination.
According to the trust agreement, the remaining non-cash income in the trust fund must be sold by the trustee within 20 business days after receiving the termination notice (the sale), and the net proceeds from the sale, as well as remaining cash and other remaining funds in the trust (after appropriate deductions are made for all sale costs, liabilities, and appropriate expenses as provided in the trust agreement) must be immediately remitted to the company by the trustee (remittance). The company will make arrangements with the trustee for the remittances (if any) in the trust after the termination.
The company expects that the termination will not have any negative impact on its business and operations.