CleanSpace Holdings (ASX: CSX) Converts 13,333 Restricted Share Awards into Fully Paid Ordinary Shares

Overview of CleanSpace Holdings' Share Capital Structure

CleanSpace Holdings Limited, trading on the ASX as CSX with ABN 91150214636, operates a multi-layered share capital structure to align employee incentives with shareholder value. The recent conversion, announced on 27 July 2026, involves vested restricted share units issued under the employee incentive scheme being converted into ordinary fully paid shares eligible for ASX quotation.

This capital management strategy balances employee retention and motivation with market transparency. The 13,333 restricted share awards were converted into ordinary shares without cash consideration, reflecting the equity-based nature of the incentive scheme consistent with ASX-listed employee share plans.

Conversion of Vested Restricted Share Units on 16 July 2026

On 16 July 2026, CleanSpace Holdings converted 13,333 restricted share awards into ordinary fully paid shares. These awards, issued under the employee incentive scheme, vested on that date, triggering conversion. The new shares rank equally with existing ordinary shares, ensuring no preferential treatment for converted shareholders.

The CSXAD restricted share awards represent deferred equity compensation commonly used by ASX-listed companies to retain key staff and align interests with long-term performance. No cash payment was required for conversion; shares were issued based on vesting terms, valued at approximately $0.375 per share.

Quotation Application and Impact on Issued Share Capital

Following quotation of the 13,333 new ordinary shares, CleanSpace Holdings' quoted capital on the ASX will total 79,364,860 ordinary fully paid shares. The quotation application, filed on 27 July 2026, brings these shares under the ASX's trading and disclosure framework alongside existing ordinary shares.

This standard administrative process ensures consistent treatment of all ordinary shares on the exchange. The addition represents a marginal increase of less than 0.02% to the quoted share register of nearly 79.4 million shares.

Unquoted Securities Remaining in CleanSpace's Capital

After this conversion, CleanSpace Holdings retains 2,818,770 unquoted restricted share awards (CSXAD) and 1,025,000 unquoted performance rights (CSXAE). These represent future equity incentives subject to vesting and performance conditions.

The unquoted securities provide flexibility in equity issuance timing and help motivate employees and service providers. Combined, the 3,843,770 unquoted convertible securities account for roughly 4.6% of the company's total issued capital of approximately 83.2 million securities.

Employee Incentive Scheme at CleanSpace

The conversion confirms CleanSpace operates a formal employee incentive scheme compliant with ASX Listing Rules. The restricted share awards converted on 16 July 2026 were issued under this scheme, reflecting vesting conditions met by participants.

The conversion does not appear to involve key management personnel or associates, indicating broad employee participation. This aligns with ASX governance principles encouraging widespread employee share ownership to foster alignment and ownership culture.

Valuation and Economic Consideration of Converted Shares

The 13,333 shares were valued at about $0.375 each, representing the economic consideration embedded in the original restricted share award agreements. The total value of the converted shares is approximately $5,000.

No cash was required from participants; shares were issued upon vesting, consistent with typical ASX restricted share unit schemes. This valuation provides transparency on the economic impact and dilution effect for shareholders.

Conversion Timeline and Quotation Process

The conversion occurred on 16 July 2026, with both the first and last awards converted on that date, reflecting a single vesting event. The quotation application was submitted to the ASX on 27 July 2026, 11 days later, allowing time for regulatory documentation.

The issue date for the converted shares is recorded as 16 July 2026, matching the conversion date rather than the application date.

Compliance with ASX Listing Rules and Shareholder Equality

The converted shares rank equally with all existing ordinary shares in the CSX class, carrying identical rights and obligations. This equal ranking complies with ASX Listing Rules, ensuring consistent treatment of shareholders.

CleanSpace’s quotation application discloses full details of the conversion, including security class, conversion ratio, date, quantity, consideration, and ranking, fulfilling continuous disclosure obligations and regulatory compliance.

Equity Incentive Program and Future Issuances

While this conversion did not raise cash, CleanSpace’s equity incentive program demonstrates the company’s use of equity compensation to retain and motivate employees. The outstanding 2,818,770 restricted share awards and 1,025,000 performance rights indicate ongoing potential equity issuances as vesting and performance conditions are met.

The coexistence of restricted share awards and performance rights reflects a multi-tiered incentive structure, with some awards vesting on time and employment, and others contingent on performance. Future conversions will follow similar ASX quotation and disclosure procedures.