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American Apparel opts for Performance Equity Plan
04 Jan '08
3 min read
American Apparel Inc has announced further details regarding the 2.71 million common shares to be issued to its employees under the 2007 Performance Equity Plan approved by shareholders on December 12, 2007. These shares are being allocated and issued pursuant to the terms of the Amended and Restated Agreement and Plan of Reorganization.
The 2.71 million shares will be issued directly to, or for the benefit of, employees promptly after an effective registration statement on Form S-8 is filed with respect to these shares. This filing is expected to take place in mid-February.
The value of this stock grant is approximately $39 million based on American Apparel's closing stock price of $14.45 on January 2, 2008. As disclosed in Endeavor Acquisition Corp.'s press release of November 8, 2007, and based on the assumptions therein, the shares amount to approximately 4.0 percent of the company's pro forma fully-diluted shares outstanding.
Subject to some exceptions, it is expected that each active, full-time employee of American Apparel on the date of grant, including management, factory workers, retail employees, or otherwise, employed with the company for over one year, will receive approximately 250 shares of stock for each year of employment through December 14, 2007.
This equates to roughly one share of stock for each workday. As an example, an employee who has worked for four years would receive approximately 1,000 shares of stock, currently worth about $14,450.
The 2.71 million shares will be issued directly to, or for the benefit of, employees promptly after an effective registration statement on Form S-8 is filed with respect to these shares. This filing is expected to take place in mid-February.
The value of this stock grant is approximately $39 million based on American Apparel's closing stock price of $14.45 on January 2, 2008. As disclosed in Endeavor Acquisition Corp.'s press release of November 8, 2007, and based on the assumptions therein, the shares amount to approximately 4.0 percent of the company's pro forma fully-diluted shares outstanding.
Subject to some exceptions, it is expected that each active, full-time employee of American Apparel on the date of grant, including management, factory workers, retail employees, or otherwise, employed with the company for over one year, will receive approximately 250 shares of stock for each year of employment through December 14, 2007.
This equates to roughly one share of stock for each workday. As an example, an employee who has worked for four years would receive approximately 1,000 shares of stock, currently worth about $14,450.
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