Tulikivi Oyj - Company Announcement

Vesting criterion of Tulikivi Corporation stock options 2013 and market value of stock options 2013C

TULIKIVI CORPORATION  STOCK EXCHANGE RELEASE  17 March 2016 at 10.15 am.



VESTING CRITERION OF TULIKIVI CORPORATION STOCK OPTIONS 2013 AND MARKET VALUE
OF STOCK OPTIONS 2013C 



The Board of Directors of Tulikivi Corporation decided on 17 September 2013 to
issue stock options to the Tulikivi Group key employees.  The number of stock
options is 1,800,000 and they entitle their owners to subscribe for as many new
series A shares or series A shares held by the company. The share subscription
period is 1 May 2016–31 May 2018 for stock option 2013A; 1 May 2017–31 May 2019
for stock option 2013B; and 1 May 2018–31 May 2020 for stock option 2013C. The
share subscription price of the stock options is EUR 0.33 per share. The Board
of Directors will determine separate financial targets based on the company’s
performance improvement program for vesting of each stock option class. 

 The Board of Directors has decided to convert 80,000 stock options 2013A to
stock options 2013B and 2013C. After the conversion, the number of stock
options is 2013A: 500,000, 2013B 650,000 and 2013C 650,000. 

 The targets established for the 2015 financial year´s Earnings before
Interest, Taxes, Depreciation and Amortization (EBITDA) regarding the stock
options 2013A and 2013B were not achieved. The Board of Directors decided to
establish new targets for the financial year 2016. The share subscription
period for stock options 2013A, 2013B and 2013C will begin only if the targets
established for the 2016 financial year’s EBITDA are fulfilled. 

 The number of stock options 2013C is 650,000. The theoretical market value of
one stock option 2013C is EUR 0.04 per stock option. The theoretical market
value of the stock options 2013C is EUR 26,000 in total. The theoretical market
value of one stock option has been calculated using the Black & Scholes stock
option pricing model with the following input factors: share price EUR 0.22,
share subscription price EUR 0.33, risk free interest rate -0.24%, time to
maturity of stock options approximately 4.2 years and volatility 38%. The
theoretical market value of the stock options has not been adjusted downward
for the probability the targets established for the vesting criterion not being
fulfilled. 

The terms and conditions of the stock options 2013 has been published on 17
September 2013. 

TULIKIVI CORPORATION

Heikki Vauhkonen

Managing Director



Distribution:

Nasdaq Helsinki Ltd

Key Media

www.tulikivi.com



Additional information: Heikki Vauhkonen, Managing Director, tel. +358 207 636
555