The board of CoTec Holdings Corp. (TSXV:CTH, OTC:CTHCF) has completed its annual grant of equity incentives under the company’s Long Term Incentive Plan with an effective grant date of April 30, 2026. These awards were set using the TSX Venture Exchange closing price of $1.34 on that date. The announcement, released May 1, 2026, outlines three instrument types issued this cycle: incentive stock options, restricted share units (RSUs) and deferred share units (DSUs). This package aligns compensation with long-term value creation and retention, linking team and board rewards to the company’s share performance and strategic milestones.
Under the LTIP, the grants address different participant groups and serve distinct purposes: employee motivation through exercise-based awards, officer retention via time-based units, and director remuneration through deferred entitlements. Each award carries specific terms for exercise or settlement and staggered vesting that promotes continuity across corporate functions. The company made the allocations with an eye toward preserving cash while providing equity-linked upside, consistent with many resource-technology companies that balance capital efficiency and talent incentives in capital-intensive sectors.
Table of Contents:
Details of the stock option grant
Scope and economics
CoTec granted a total of 598,274 incentive stock options to employees. The options are exercisable for a period of 10 years at an exercise price equal to the grant price of $1.34 per common share. The structure follows a typical multi-year retention schedule with vesting occurring in three equal tranches: one third of the options vest every 12 months over a three-year period. This design seeks to align employee incentives with sustained operational progress and shareholder value creation while preserving long-term employee commitment to the company’s initiatives.
Restricted share units and consultant award
Recipients and vesting mechanics
The company issued a combined total of 1,364,482 restricted share units. Of these, 1,329,557 RSUs were granted to officers and 34,925 RSUs to a consultant, reflecting differentiated allocation for executive leadership and advisory services. The RSUs vest over three years on a one-third per annum schedule, with the first tranche maturing 12 months after issuance. These time-based units are intended to retain key executives and to translate performance and tenure into equity ownership without immediate cash outlay.
Director compensation via deferred share units
Structure and purpose
To compensate members of the board in lieu of cash fees, CoTec issued 213,919 deferred share units. The DSUs are subject to a 12-month vesting period following issuance. As a form of deferred remuneration, DSUs help align directors’ interests with long-term shareholder outcomes and encourage board members to take a sustained governance view. The DSU allocation reflects a broader trend among public issuers to use equity-linked instruments for non-executive pay programs.
Strategic context and company overview
CoTec Holdings Corp. positions itself at the intersection of resource recovery and advanced materials, focusing on rare earth magnets and other strategic materials. The company deploys proprietary and partner technologies to recover critical inputs from marginal assets, tailings, waste streams and recycled sources. Notable initiatives include the HyProMag USA magnet recycling joint venture in Texas and iron tailings reprocessing projects in Québec, alongside efforts in next-generation copper and iron supported by global industry partners. CoTec frames these activities as contributions to the energy transition and to strengthening supply chain security for strategic minerals.
Forward-looking statements and additional information
The release reiterates customary caution about forward-looking statements, noting that projections and expectations involve risks, uncertainties and variables that may cause actual outcomes to differ materially. Factors include macroeconomic conditions, technological scalability, regulatory developments, competition, and the successful application and commercialization of mineral processing technologies. For a full discussion of risks and the company’s disclosures, readers are directed to CoTec’s filing statement dated April 6, 2026 and other continuous disclosure documents available on SEDAR+. For inquiries about the awards or corporate matters, contact Braam Jonker at (604) 992-5600.