KR1 plc Revised Executive Service Arrangements
01 October 2021 - 8:20PM
UK Regulatory
TIDMKR1
1 October 2021
KR1 PLC
("KR1" or the "Company")
Revised Executive Service Arrangements and Research Agreement
KR1 plc (KR1:AQSE), a leading digital asset investment company, is pleased to
announce that the Company has revised its executive management arrangements and
entered into an exclusive research service agreement with Reflexivity Research
Limited ("Reflexivity"). This represents a more robust and aligned arrangement
which reflects KR1's commitment to enhanced corporate governance.
Reflexivity is a recently formed company owned by George McDonaugh and Keld van
Schreven, Managing Directors of KR1, and Janos Berghorn, the Company's Head of
Research (together, the "Executives").
Reflexivity was established to become a research and consultancy firm focused
on innovative decentralised technologies. As a standalone entity, Reflexivity
is positioned to secure and retain industry-leading research talent with deep
technical expertise and extensive personal networks within the digital asset
ecosystem.
The services of Reflexivity will be exclusively available to KR1 pursuant to
the terms of an agreement entered into between KR1, Reflexivity and the
Executives (the "Services Agreement"), for an initial term of seven years.
Under the Services Agreement, Reflexivity has agreed to provide KR1 with the
services of the Executives, who will continue to fulfil the same roles at KR1
as they currently do, with the same responsibilities, namely as Managing
Directors, in the case of George McDonaugh and Keld van Schreven, and as Head
of Research, in the case of Janos Berghorn. In addition, Reflexivity and the
Executives have agreed that certain intellectual property which is currently
owned by the Executives, and which relates to KR1 and the Company's branding
(including the Company's domain name and various social media accounts) will be
licensed to KR1, without charge, while the Services Agreement remains in force.
The Services Agreement provides for Reflexivity to receive an annual fee
equivalent to 1.9% of the Company's Net Asset Value, if that Net Asset Value is
below £250 million, and 1.7% of the Company's Net Asset Value, if that Net
Asset Value exceeds £250 million. All costs incurred by Reflexivity fulfilling
its obligations under the Services Agreement, including the employment costs of
the Executives, will be met by Reflexivity, not KR1.
The Services Agreement also provides for Reflexivity as an entity, instead of
the Executives individually, to participate in KR1's existing Performance
Incentive Scheme (the "Scheme"). Reflexivity's participation will be on the
same basis as previously enjoyed by the Executives up until 30 June 2021, after
which the terms of the Scheme have been amended, effective from 1 July 2021,
such that Reflexivity shall be entitled to receive an annual performance fee
equivalent to 20% of any increase in the Company's net asset value, above a
previous high water mark, over a relevant period. Any performance fee awarded
to Reflexivity under the revised arrangements will be satisfied entirely by the
issue of ordinary shares in the Company (compared to only 80% awarded in
ordinary under the current arrangements) with the issue price determined by the
net asset value per Share at the end of a relevant period.
KR1's Non-Executive Directors, Rhys Davies, Simon Nicol and Mona Elisa, believe
that, as the Company matures in its operations, it is important to establish a
robust and aligned relationship and that the new arrangements represent a
sustainable and competitive agreement, securing the Executives and services of
Reflexivity for the long term and allowing Reflexivity to expand its research
activities without the overhead of being managed in a public vehicle. This will
maximise the chances of continuing KR1's success to date and aligns the
interests of Reflexivity and the Executives' future interests more closely with
those of the Company's shareholders and is therefore in the best interests of
the Company and its shareholders.
Rhys Davies, Non-Executive Chairman of KR1 plc, commented:
"These new arrangements mark a natural step in KR1's evolution as we continue
to grow and mature as a business, and reflect our commitment to enhancing our
corporate governance. Reflexivity and the individuals involved are sending a
strong signal as to the value they believe is embedded in KR1, while also
demonstrating their long-term commitment to the company, which is firmly in the
interest of our shareholders."
The Directors of KR1 plc accept responsibility for this announcement.
--ENDS--
For further information please contact:
KR1 PLC +44 (0)16 2467 6716
George McDonaugh
Keld van Schreven simon@KR1.io
Simon Nicol
Peterhouse Capital Limited (AQSE Corporate +44 (0)20 7469 0930
Adviser)
Mark Anwyl
FTI Consulting LLP (PR Adviser) +44 (0)7711 387 085
Ed Berry KR1@fticonsulting.com
Laura Ewart
About KR1 plc
KR1 plc is a leading digital asset investment company supporting early-stage
decentralised and open source blockchain projects. Founded in 2016 and publicly
traded in London on the AQSE Growth Market (KR1:AQSE), KR1 has one of the
longest and most successful track records of investment in the digital assets
space by investing in decentralised platforms and protocols that are emerging
to form new financial and internet infrastructures.
www.KR1.io
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as
defined in the European Union (Withdrawal) Act 2018).
END
(END) Dow Jones Newswires
October 01, 2021 06:20 ET (10:20 GMT)
Kr1 (LSE:0A9X)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kr1 (LSE:0A9X)
Historical Stock Chart
From Apr 2023 to Apr 2024
