Form 4: Golden Matrix Group Executive Awarded Performance-Based Restricted Stock Units

Zoran Milosevic, CEO of Meridian Subsidiaries, received 300,000 restricted stock units (RSUs) tied to the achievement of specific revenue and adjusted EBITDA targets for fiscal year 2025.

Summary

• Zoran Milosevic, CEO of Meridian Subsidiaries, was granted 300,000 restricted stock units (RSUs) on January 12, 2025.
• These RSUs will vest only if Golden Matrix Group meets certain revenue and adjusted EBITDA (AEBITDA) targets for fiscal year 2025.
• The vesting is split into four equal parts, with two parts tied to revenue targets (110% and 120% of 2024 revenue) and two parts tied to AEBITDA targets (110% and 120% of 2024 AEBITDA).
• The RSUs will vest upon the public disclosure of the 2025 operating results in the company's annual report, provided Mr. Milosevic remains employed through the vesting date.
• Mr. Milosevic is also part of a voting group that collectively owns more than 10% of the company's outstanding shares, but he disclaims beneficial ownership of shares held by other members of the group.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice with performance-based incentives, which is generally viewed positively. The sentiment is neutral to positive as it aligns management with company goals.

Positives

• The RSU grant aligns management's interests with the company's performance goals.
• The vesting conditions based on revenue and adjusted EBITDA targets incentivize growth and profitability.
• The structure of the RSU grant encourages long-term commitment from the executive.

Risks

• The RSUs will not vest if the company fails to meet the specified revenue and adjusted EBITDA targets.
• The vesting is contingent on Mr. Milosevic's continued employment, creating a potential risk of loss of incentive if he leaves the company before vesting.

Future Outlook

The vesting of the RSUs is contingent on the company meeting specific financial targets in fiscal year 2025, indicating a focus on growth and profitability.

Management Comments

• The reporting person disclaims beneficial ownership of any securities owned by any of the other signatories to the Voting Agreement.
• The filing of this Form 4 shall not be deemed an admission that the Reporting Person and any other person or persons constitute a 'group' for purposes of Section 13(d)(3) of the Exchange Act or Rule 13d-5 thereunder.

Industry Context

The use of performance-based equity compensation is a common practice in the industry to align management's interests with shareholder value creation.

Comparison to Industry Standards

• Many companies in the technology and gaming sectors use restricted stock units with performance-based vesting conditions.
• The specific targets of 110% and 120% of prior year revenue and adjusted EBITDA are within the range of typical performance hurdles for such grants.
• Companies like DraftKings and Penn National Gaming also use similar equity compensation structures to incentivize their executives.

Stakeholder Impact

• Shareholders may view the performance-based RSU grant positively as it aligns management's interests with the company's financial success.
• Employees may be motivated by the company's focus on achieving growth and profitability targets.
• The RSU grant does not directly impact customers, suppliers, or creditors.

Next Steps

• The company needs to achieve the specified revenue and adjusted EBITDA targets for the RSUs to vest.
• The vesting will be determined after the end of fiscal year 2025 and the public disclosure of the results in the annual report.

Key Dates

Keywords

Restricted Stock Units, RSU, Incentive Plan, Performance Targets, Revenue, Adjusted EBITDA, AEBITDA, Vesting, Equity Compensation, Golden Matrix Group, GMGI, Meridian Subsidiaries, Zoran Milosevic