Form 4: DIRTT Environmental Solutions Director Acquires 39,210 Deferred Share Units

Director Shalima K. Pannikode acquired 39,210 deferred share units of DIRTT Environmental Solutions Ltd. on December 31, 2024.

Summary

• Shalima K. Pannikode, a director at DIRTT Environmental Solutions Ltd., acquired 39,210 deferred share units (DSUs) on December 31, 2024.
• These DSUs were granted under the company's Amended and Restated Long Term Incentive Plan.
• Each DSU is equivalent to one common share of DIRTT Environmental Solutions Ltd.
• The DSUs will settle after the director's service with the company ends, either in common shares or the cash equivalent.
• For US-based directors, settlement will occur no later than 40 days after their termination date.
• The price used to calculate the number of DSUs was C$0.96 per share, which was the closing price on the Toronto Stock Exchange on December 30, 2024.
• This price was converted to US$0.67 using the Bank of Canada exchange rate of C$1.4379 = US$1.00 on December 30, 2024.
• Following this transaction, Ms. Pannikode beneficially owns 165,570 common shares.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed positively as it aligns director interests with shareholders. There are no negative implications.

Positives

• The acquisition of deferred share units by a director demonstrates alignment with the company's long-term performance.
• The long-term incentive plan encourages directors to remain with the company.

Future Outlook

The deferred share units will settle following the cessation of service and employment with the Issuer, either in common shares or cash equivalent.

Industry Context

This is a standard practice for companies to use long-term incentive plans to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Granting deferred share units to directors is a common practice among publicly traded companies to incentivize long-term performance and retention.
• Many companies in the construction and environmental solutions sectors use similar long-term incentive plans.
• The specific terms of the plan, such as the vesting period and settlement method, are typical for director compensation packages.

Stakeholder Impact

• The acquisition of deferred share units by a director can be viewed positively by shareholders as it aligns the director's interests with the company's long-term success.

Key Dates

Keywords

Deferred Share Units, DSU, Director, DIRTT Environmental Solutions, Long Term Incentive Plan, Share Acquisition, Beneficial Ownership