A few days ago, we post about how a company called Naturally Advanced Technologies (NAT) was conducting industrial hemp trials on the bulk commercialization of hemp. The point of the trials is to determine the best ways to bring their patented CRAILAR® Organic Fiber into the apparel and pulp & paper markets.
Well, to reward theri CEO, Kenneth C. Barker, for setting up the partnerships necessary to get these trials underway, NAT is now offering Barker stock options. As the press release reports:
PORTLAND, OR, Oct 23, 2008 /PRNewswire-FirstCall via COMTEX/ — Naturally Advanced Technologies Inc. (NADVF), a pioneer in commercializing the use of bast fibers including industrial hemp for use in casual apparel, performance yarns, industrial filters and absorbent pulp and paper products, granted a stock option to purchase up to 500,000 shares in the capital of NAT at an exercise price of US$1.45 per share to Kenneth C. Barker, NAT’s Chief Executive Officer. Press release notice of this grant falls under standard compliance requirements of the TSX Venture Exchange.
Miljenko Horvat, Chairman of the board, stated, “We have an extremely talented management team and it is our policy to employ stock options as incentive. This year Ken has led the team in efforts that culminated in two significant milestones: CRAILAR(R) trials for Organic Fibers with a leading U.S. apparel brand and CRAILAR(R) trials for Advanced Materials with one of North America’s largest pulp and paper producers. We look forward to management driving to commercialization with the goal of establishing commercial partnerships.”
The stock option is dated October 14, 2008 and is subject to an 18 month vesting schedule under the terms and conditions of NAT’s existing fixed share option plan. The options carry a three year term and expire on October 14, 2011.
What this means is that, until October 14, 2011, Barker will be able to purchase as many as 500,000 stocks in NAT for only $1.45 USD each. Although stock in NAT is currently only worth $1.45 USD per share, it can go up, and if it does, Barker won’t have to pay more than $1.45 USD a share. So if NAT stock rises to $3.00 a share, Barker can buy as many as half a million shares for only $1.45, and then turn around a sell those share and more than double his money.
All in all, Barker has quite the incentive to keep up his seemingly good work at NAT, and continue to find ways to bring industrial hemp products to market. It will be interesting, then, when the NAT trials conclude in a few weeks, and we start to get an idea of just how much potential NAT’s hemp-based products have in a bulk commercial market (not to mention how much of a rich man Barker stands to become).