Grown Rogue International Inc. (GRIN), a craft cannabis company with roots in Oregon’s Rogue Valley, has taken a significant step towards aligning leadership incentives with long-term company goals. The company has granted stock options and restricted stock units (RSUs) to key directors, officers, and employees. This move signals a strong belief in the company’s future and its potential for growth.
The company has granted options to purchase an aggregate of 6,755,000 subordinate voting shares (SV Shares) at an exercise price of $0.84 per share. A majority of these options, 5,355,000, expire three years from the grant date, while the remaining 1,400,000 expire in five years. The vesting schedule is designed to encourage retention and performance, with 6,705,000 options vesting in equal installments over the next three years. This means employees and directors will need to remain with the company to benefit from these options.
In addition to the stock options, Grown Rogue has granted 454,200 RSUs to certain directors. RSUs represent a form of equity compensation that will eventually convert into company shares, further solidifying the directors’ stake in the company’s future success.
Furthermore, Grown Rogue announced the conversion of 75,194,941 multiple voting shares (MV Shares) into subordinate voting shares. This conversion simplifies the company’s capital structure by eliminating the MV Shares, leaving 222,276,113 SV Shares outstanding. This move indicates a focus on a streamlined structure for future growth.
The conversion was led by the company’s CEO, Obie Strickler, who converted 2,000 MV Shares into 2,000,000 SV Shares. Following this conversion, Strickler now holds a 15.6% stake in the company on an undiluted basis, demonstrating his significant commitment to the company’s success.
The issuance of stock options and RSUs, coupled with the conversion of MV Shares, suggests that the company is positioning itself for long-term growth. These actions could also be interpreted as a sign of confidence in Grown Rogue’s prospects, particularly as it continues to expand its footprint across key U.S. markets.
