Form 4: DIRTT Environmental Solutions Director Acquires Deferred Share Units

Director Shalima K. Pannikode acquired 15,708 deferred share units (DSUs) of DIRTT Environmental Solutions Ltd. on March 29, 2024.

Summary

• On March 29, 2024, Shalima K. Pannikode, a director of DIRTT Environmental Solutions Ltd., acquired 15,708 deferred share units (DSUs).
• These DSUs were granted under the company's Amended and Restated Long Term Incentive Plan.
• Each DSU represents the economic equivalent of one common share of DIRTT Environmental Solutions Ltd.
• The DSUs will settle following the cessation of service and employment with the Issuer (the 'Termination Date').
• For US Directors, the DSUs will settle no later than forty days following the Termination Date.
• Settlement will be in either one common share or the cash equivalent, based on the closing price of the common shares on the day prior to the 30th day following separation from service for US Directors.
• The price used to calculate the number of DSUs granted was C$0.67, the closing price of DIRTT's common shares on the Toronto Stock Exchange on March 28, 2024.
• This price was converted to US$0.49 using the Bank of Canada exchange rate on March 28, 2024 (C$1.3550 = US$1.00).

Sentiment

Score: 6

Explanation: The document is a neutral regulatory filing. The acquisition of DSUs by a director is a moderately positive sign, indicating confidence in the company, but it's a routine event.

Positives

• The acquisition of DSUs by a director signals confidence in the company's future performance.

Future Outlook

The DSUs will settle following the cessation of service and employment with the Issuer (the 'Termination Date'). For US Directors, the DSUs will settle no later than forty days following the Termination Date. Each DSU will be settled in one Common Share or in the cash equivalent of such Common Shares, calculated based on the closing price of the Common Shares on the day prior to the 30th day following separation from service for US Directors

Industry Context

This filing is a routine disclosure related to executive compensation and aligns with standard practices for publicly traded companies.

Comparison to Industry Standards

• Deferred Share Units (DSUs) are a common form of executive compensation in publicly traded companies, particularly in Canada.
• Companies like SNC-Lavalin, Bombardier, and others in the engineering and construction sectors also utilize DSUs as part of their long-term incentive plans.
• The terms of DIRTT's DSU plan, such as settlement upon termination of service, are generally consistent with industry norms.

Stakeholder Impact

• The acquisition of DSUs by a director can positively influence shareholder sentiment, as it aligns the director's interests with those of the shareholders.

Key Dates