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Kitron's board of directors has approved the issuance of 2,911,379 new shares in line with the exercises notices received from the participants in the share incentive program. The shares are issued to the option holders at a strike price of NOK0.10 per share, pursuant to the board authorization resolved in Kitron's general meeting held April 30, 2019.
In addition, Kitron has decided to convert 2,027,358 options under the share incentive program against cash consideration, which will be utilized to cover the tax cost for the option holders that will be subject to advance tax deduction by Kitron after the exercise of the options. The conversion of options is made at NOK8.97, which is equal to the closing price on Oslo Børs on May 29, 2019, less the strike price of NOK0.10 per share.
Kitron has also resolved to exercise a right under the share incentive program to implement trading restrictions on the shares issued under the abovementioned share capital increase. All shares issued will be subject to trading restrictions with a duration of two years; however, so that one eighth of the total number of new shares will vest and become tradable each quarter.
Kitron is one of Scandinavia's leading electronics manufacturing services companies for the Energy/Telecoms, Industry, Defence/Aerospace, Medical devices and Offshore/Marine sectors. The company is located in Norway, Sweden, Lithuania, Germany, China and the United States. Kitron had revenues of about NOK 2.6 billion in 2018 and has about 1,700 employees.