Form 4: DIRTT Environmental Solutions Director Douglas Edwards Granted Over 34,000 Deferred Share Units

DIRTT Environmental Solutions Ltd. Director Douglas A. Edwards was granted 34,294 Deferred Share Units (DSUs) on June 30, 2025, as part of the company's long-term incentive plan.

Summary

• Douglas A. Edwards, a Director of DIRTT Environmental Solutions Ltd. (DRTTF), was granted 34,294 Deferred Share Units (DSUs).
• The grant occurred on June 30, 2025.
• Each DSU is the economic equivalent of one common share of DIRTT Environmental Solutions Ltd.
• The price used to calculate the number of DSUs was C$0.82, based on the closing price of the Issuer's Common Shares on the Toronto Stock Exchange on June 27, 2025.
• This price converts to approximately US$0.60 using the Bank of Canada exchange rate of C$1.3676 = US$1.00 on June 27, 2025.
• Following this transaction, Douglas A. Edwards beneficially owns 822,299 DSUs.

Sentiment

Score: 6

Explanation: The grant of DSUs to a director is a routine compensation event that aligns director interests with shareholders, indicating stability in governance and compensation practices. It's mildly positive as it increases insider alignment.

Positives

• The grant of Deferred Share Units aligns the interests of Director Douglas A. Edwards with those of shareholders, as the value of the DSUs is tied to the company's common share performance.
• The transaction is part of a pre-existing, approved long-term incentive plan, indicating structured executive compensation.

Future Outlook

Deferred Share Units (DSUs) will settle following the cessation of service and employment with DIRTT Environmental Solutions Ltd. For US Directors, DSUs will settle no later than forty days following the termination date, either in common shares or the cash equivalent based on the closing price of common shares on the day prior to the 30th day following separation from service.

Industry Context

The grant of Deferred Share Units is a common form of long-term incentive compensation for directors and executives in publicly traded companies, designed to align their interests with shareholder value creation. This practice is standard across various industries, including the environmental solutions and construction sectors where DIRTT operates.

Comparison to Industry Standards

• The grant of DSUs as a form of director compensation is a standard practice in corporate governance, aligning with common industry benchmarks for executive and board remuneration.
• While specific compensation amounts vary by company size, industry, and individual performance, the use of equity-linked instruments like DSUs is widely adopted by companies comparable to DIRTT Environmental Solutions Ltd. to foster long-term commitment and performance.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential positive impact due to increased alignment of director's interests with shareholder value through equity-linked compensation.

Next Steps

• Settlement of DSUs upon cessation of service and employment with the Issuer.
• For US Directors, settlement will occur no later than forty days following the Termination Date.

Key Dates

Keywords

DIRTT Environmental Solutions, DRTTF, Douglas A. Edwards, Deferred Share Units, DSU, Insider Transaction, Director Compensation, SEC Form 4, Equity Grant, Long Term Incentive Plan