Form 4: Golden Matrix Group Insider Receives Performance-Based Restricted Stock Units

Snezana Bozovic, a member of a 10% reporting group for Golden Matrix Group, was granted 75,000 restricted stock units (RSUs) that vest upon the company meeting specific revenue and adjusted EBITDA targets by the end of fiscal year 2025.

Summary

• Snezana Bozovic, identified as a member of a 10% reporting group for Golden Matrix Group, received 75,000 restricted stock units (RSUs).
• These RSUs will vest if Golden Matrix Group achieves certain revenue and adjusted EBITDA (AEBITDA) targets by the end of fiscal year 2025.
• The vesting is split into four equal parts, with two parts tied to revenue targets (1.1x and 1.2x 2024 revenue) and two parts tied to AEBITDA targets (1.1x and 1.2x 2024 AEBITDA).
• The RSUs will vest upon the public disclosure of the company's operating results in its Annual Report on Form 10-K, provided Ms. Bozovic remains in service through the vesting date.
• The reporting person is part of a voting group that collectively owns more than 10% of the company's outstanding shares, but disclaims beneficial ownership of shares held by other members of the group.

Sentiment

Score: 7

Explanation: The document reflects a standard practice of granting performance-based equity, which is generally positive for aligning interests. The sentiment is neutral to slightly positive as it indicates a focus on growth and profitability.

Positives

• The granting of RSUs aligns the interests of the reporting person with the company's performance goals.
• The vesting conditions based on revenue and AEBITDA targets provide clear performance metrics for the company to achieve.
• The structure of the RSU vesting encourages long-term service from the reporting person.

Risks

• The RSUs will not vest if the company fails to meet the specified revenue and AEBITDA targets by the end of fiscal year 2025.
• The reporting person's continued service is required for the RSUs to vest, creating a potential risk if they leave the company before the vesting date.

Future Outlook

The vesting of the RSUs is contingent on the company meeting specific financial targets by the end of fiscal year 2025, indicating a focus on achieving these goals.

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 granting of performance-based equity compensation is a common practice in the industry to align management and employee interests with company performance. This is a standard method to incentivize growth and profitability.

Comparison to Industry Standards

• The use of RSUs with performance-based vesting conditions is a common practice among publicly traded companies, particularly in the technology and growth sectors.
• Many companies use similar metrics like revenue and EBITDA growth to determine vesting schedules for equity grants.
• Companies like DraftKings and Penn National Gaming also use performance-based equity grants to incentivize their executives and key employees.

Stakeholder Impact

• Shareholders may view the performance-based RSUs positively as they align management's interests with the company's financial success.
• Employees may be motivated by the potential for equity gains tied to company performance.

Next Steps

• The company needs to achieve the specified revenue and AEBITDA targets by the end of fiscal year 2025 for the RSUs to vest.
• The company will need to publicly disclose its operating results in its Annual Report on Form 10-K.

Key Dates

Keywords

restricted stock units, RSU, insider trading, beneficial ownership, Golden Matrix Group, GMGI, revenue targets, EBITDA targets, voting agreement, Snezana Bozovic