Mercator Medical wants to launch an incentive programme for key managers

During the Extraordinary General Assembly of Mercator Medical to convene on 12 April this year, shareholders may adopt a resolution on the basis of which an incentive program for key management will be launched. According to the draft resolution (current report no. 6/2018), eligible persons may receive warrants which will provide the basis to the issue of a total of up to 120,000 H-series shares (up to 1.12% in increased share capital).

“The issue price specified in the draft resolution is PLN 17.5 per share, which means that managers should pay up to PLN 2.1 million in cash for the shares subscribed for, with the issue price being at the level of the present share price on the Warsaw Stock Exchange. As a result, the accounting valuation of the incentive programme for the company should be neutral and, at the same time, the incentive aspect for key managers to dynamically increase the generated financial results and achieve business goals is becoming very important”, comments Wiesław Żyznowski, PhD, President of the Management Board, founder of Mercator Medical and its main shareholder.

Future results of the Mercator Medical Group will be affected significantly by the effects of implementation of the three-year strategy for the years 2016-2018. It is based on four pillars, i.e. construction of the nitrile gloves factory, start-up of the nonwoven products factory, expansion in Western Europe, and strengthening of the position in the CEE region. As part of the extension of the gloves factory in Thailand by the addition of a synthetic latex gloves production facility (estimated investment: PLN 119 million), four production lines out of eight are already installed, and full production capacity should be available in the summer this year. At that time, the Mercator Medical Group’s manufacturing capacity in terms of single-use gloves will increase by 150% YOY and reach 3 billion gloves per year. On the other hand, construction of the nonwoven fabric product manufacturing plant in Poland (investment of PLN 3.9 million) was completed in the summer 2017 and in Q4, after the certification period, we started selling products from the new facility to external customers. The purpose of this investment is to significantly increase the operational and financial efficiency related to the assortment distributed so far, for example surgical drape sheets.