Form 4: DIRTT Environmental Solutions Director Scott Ryan Reports Changes in Beneficial Ownership

Director Scott Ryan reports acquisition of Deferred Share Units (DSUs) in DIRTT Environmental Solutions, equivalent to common shares, following the company's Amended and Restated Long Term Incentive Plan.

Summary

• On June 30, 2024, Scott Ryan, a director of DIRTT Environmental Solutions Ltd., reported changes in beneficial ownership.
• Ryan acquired 98,385 Deferred Share Units (DSUs) under the company's Amended and Restated Long Term Incentive Plan.
• Each DSU is economically equivalent to one common share of DIRTT Environmental Solutions Ltd.
• The DSUs will settle following the cessation of service and employment with the Issuer, with specific timing for US Directors.
• The price used to calculate the number of DSUs granted was C$0.57, converted to US$0.42 using the Bank of Canada exchange rate on June 28, 2024.
• Following the reported transaction, Ryan directly owns 756,690 common shares.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a standard regulatory filing detailing a director's acquisition of DSUs, which is part of a pre-existing compensation plan. There's no indication of positive or negative implications for the company's performance.

Positives

• The acquisition of DSUs by a director signals confidence in the company's long-term prospects.
• The Amended and Restated Long Term Incentive Plan aligns the interests of directors with those of shareholders.

Future Outlook

The DSUs will settle following the cessation of service and employment with the Issuer, with specific timing for US Directors. 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 ownership changes, common in publicly traded companies. It reflects the company's compensation strategy and alignment of management interests with shareholders.

Comparison to Industry Standards

• Long-term incentive plans using deferred share units are a common practice among publicly traded companies to align executive compensation with shareholder value.
• Companies like Steelcase and Herman Miller, which are competitors of DIRTT Environmental Solutions, also utilize similar equity-based compensation plans for their executives and directors.
• The specific terms of the DSU plan, such as the vesting schedule and settlement terms, are generally comparable to industry standards for executive compensation.

Stakeholder Impact

• The acquisition of DSUs by a director can positively influence shareholder sentiment by demonstrating confidence in the company's future performance.

Key Dates