Genmab A/S Announces Stock Unit and Warrant Grants to Employees
COPENHAGEN, Denmark; February 28, 2025 – In a recent company announcement, Genmab A/S (GMAB) revealed that its Board of Directors had made the decision to grant a total of 1,131,867 units to its management and employees, as well as those of its subsidiaries. This figure consists of 614,676 restricted stock units (RSUs) and 517,191 warrants.
Restricted Stock Units (RSUs)
Each RSU grants its owner the conditional right to receive one share in Genmab A/S, with a nominal value of DKK 1. These units are awarded cost-free to the recipients. The RSUs are subject to vesting schedules that extend over a period of up to four years from the date of grant, with a one-year cliff. This means that the vested RSUs will be released gradually over the vesting period.
Warrants
The warrants issued to employees permit their holders to purchase Genmab A/S shares at a predetermined exercise price, which is set at 125% of the average closing price of the Genmab A/S share on the Nasdaq Copenhagen during a 10-day period leading up to the grant date. These warrants will vest over a four-year period, with a one-year cliff.
Impact on Shareholders
The granting of these stock units and warrants to employees and management may lead to dilution of existing shareholders’ holdings. This occurs when new shares are issued, increasing the total number of outstanding shares. The extent of dilution depends on the number of shares issued upon the exercise of the RSUs and warrants.
Impact on the World
The stock unit and warrant grants by Genmab A/S may have a ripple effect on the broader economy, as the recipients may choose to sell their new shares or exercise their warrants, leading to increased liquidity in the Genmab A/S stock market. Furthermore, the grants may incentivize employees to work harder and contribute to the company’s growth, potentially increasing its market value.
Conclusion
Genmab A/S’s announcement of stock unit and warrant grants to its employees and management, as well as those of its subsidiaries, represents a significant investment in its workforce. While this may result in dilution for existing shareholders, it also has the potential to incentivize employees, boost the company’s growth, and contribute to increased liquidity in the Genmab A/S stock market. These grants are a common practice in the business world, as companies aim to attract and retain top talent.
- Genmab A/S grants RSUs and warrants to employees and management
- RSUs provide the right to receive one share in Genmab A/S, with a nominal value of DKK 1
- Warrants allow holders to purchase Genmab A/S shares at a predetermined exercise price
- RSUs and warrants subject to vesting schedules
- Stock unit and warrant grants may lead to dilution for existing shareholders
- Grants may incentivize employees and contribute to company growth
- Impact on shareholders and the world may vary depending on the number of shares issued
