This is the exercise of performance rights, not directors buying shares on market. The performance rights were exercised as the market cap of MOD exceeded $120 million for more than 30 days consecutively. There was nil upfront consideration for the shares (i.e. they were gifted to directors on the condition that the milestone was reached within the next 5 years).
If the market cap of MOD exceeds $180 million for 30 days, there will be another 31 millions shares issued to directors as part of this agreement
Personally, i think this is an excellent way to incentivise directors. The directors probably took large pay cuts during the 2012 - 2015 downturn while consolidating and progressing this project, so its only right that they retain their piece of the pie. In addition, in the event of a takeover, having directors holding a large percentage of stock is a good thing.
MOD Price at posting:
6.2¢ Sentiment: Hold Disclosure: Held
