Collins Foods Limited Issues 33,977 Ordinary Shares from Performance Rights Conversion on 21 July 2026

Overview of Collins Foods Limited and Market Position

Collins Foods Limited, trading on the ASX under ticker CKF and ABN 13 151 420 781, issued an update on 22 July 2026 regarding equity securities administration and the conversion of employee incentive arrangements. This announcement marks the completion of a securities exercise event within the company’s capital management framework, highlighting the ongoing use of incentive-based remuneration for eligible participants.

As a publicly listed entity, Collins Foods employs a structured equity compensation system using ordinary shares, performance rights, and ownership share plan rights to align management and employee interests with shareholder value. The conversion of performance rights into ordinary shares is a routine corporate action for ASX-listed companies, representing the maturation of previously granted incentive securities within the remuneration strategy. The announcement offers transparency on changes to issued capital and confirms key management personnel participation in exercising vested equity benefits.

Details of Performance Rights Exercise and Conversion Process

On 21 July 2026, 33,977 performance rights under ASX code CKFAI were exercised and converted into ordinary fully paid shares under ASX code CKF. All conversions occurred on the same business day. The newly issued ordinary shares rank equally with existing ordinary shares from their issue date, ensuring no differentiation or subordination relative to previously issued shares.

The exercise involved no cash payment from holders; instead, performance rights were satisfied through issuing ordinary shares. This non-cash conversion aligns with typical employee and executive share schemes where vesting conditions are met and shares are issued without monetary exchange. The conversion confirms that vesting criteria were fulfilled, allowing eligible holders to exercise their rights during the designated period.

Participation of Key Management Personnel in Equity Conversion

Andrew Leyden, a key management personnel member, exercised 7,387 of the total 33,977 performance rights on 21 July 2026. These securities were registered to Andrew and Rose Leyden via the Leyden Family Super Fund, illustrating the use of superannuation vehicles for holding converted equity. This represents approximately 21.8% of the total shares issued through this exercise event.

The involvement of key management personnel underscores alignment between executive interests and shareholders through equity compensation. Utilizing superannuation structures for holding shares is common in Australian corporate governance, providing tax-advantaged retirement savings. Disclosure of insider participation enhances market transparency and confirms that performance rights vesting and exercise remain integral to the company’s remuneration processes.

Effect on Collins Foods’ Issued Share Capital

Following quotation of the 33,977 newly converted ordinary shares, Collins Foods’ total quoted ordinary share capital increases to 118,231,057 shares. These shares are freely tradable on the ASX under standard regulatory conditions.

Additionally, Collins Foods retains 1,009,390 unquoted performance rights (CKFAI) and 121,856 unquoted ownership share plan rights (CKFAL). These outstanding convertible securities represent potential future dilution if exercised, indicating that not all previously granted incentive securities were converted during this event.

Employee and Executive Incentive Scheme Vesting and Conversion

The conversion of performance rights into ordinary shares finalizes an employee and executive incentive scheme managed by Collins Foods. Performance rights are conditional instruments that vest upon meeting performance metrics, service, or time-based conditions. The 21 July 2026 exercise confirms vesting conditions were satisfied, enabling holders to convert rights into shares.

This update confirms the performance rights were issued under an employee incentive scheme, highlighting equity incentives as part of the company’s remuneration framework. Such schemes aid talent retention, align employee and shareholder interests, and provide non-cash compensation preserving liquidity. The single-date exercise suggests alignment with scheduled corporate or administrative equity management processes.

Equal Ranking and Rights of Newly Issued Shares

The newly issued ordinary shares rank equally in all respects with existing CKF ordinary shares from their issue date. This ensures identical voting rights, dividend entitlements, and economic interests for holders of the converted shares compared to existing shareholders. Equal ranking complies with ASX listing rules and principles of shareholder equality within the same security class.

This equal status affects dividend participation and corporate actions, with new shares entitled to dividends on the same basis as existing shares. The confirmation of equal ranking provides certainty to all shareholders regarding the status of these securities within Collins Foods’ capital structure.

Nil Cash Consideration in Performance Rights Conversion

The performance rights exercised on 21 July 2026 required no cash consideration from holders, with the company recording an estimated value of 0.000000 AUD per security. This reflects the nature of performance rights as contingent equity instruments granted upon vesting without financial outlay. Unlike equity raises or placements, this conversion does not generate cash proceeds.

This nil consideration has tax and accounting implications. For Collins Foods, it represents a non-cash capital management transaction. For holders, including key management personnel, it signifies realization of equity incentives without capital investment. This is standard practice in Australian employee share schemes where vested performance rights convert to shares at no cost to employees.

Outstanding Unquoted Securities and Potential Dilution

After converting 33,977 performance rights, Collins Foods still holds 1,009,390 unquoted performance rights (CKFAI) and 121,856 unquoted ownership share plan rights (CKFAL). These remaining convertible securities could dilute ordinary share capital if exercised in the future. Their presence indicates additional incentive securities remain outstanding and may vest or be exercised as corporate milestones occur.

Maintaining unquoted securities is typical for ASX-listed companies with ongoing equity incentive programs. These instruments represent contingent claims on future share capital and reflect Collins Foods’ commitment to equity-based remuneration. Investors should note these securities as potential sources of future dilution.

Regulatory Compliance and Quotation Process

Collins Foods’ application to quote the 33,977 new ordinary shares was submitted under Appendix 2A of the ASX Listing Rules, governing additional securities quotation. The company disclosed details on the securities, holders, conversion mechanics, and changes to issued capital. The announcement was filed on 22 July 2026, one day after the exercise event, reflecting standard administrative timing.

Quotation under ASX rules ensures regulatory compliance and market transparency regarding capital structure changes. Disclosures on key management participation, nil consideration, and equal ranking uphold investor protections and market integrity. Once quoted, these shares become part of Collins Foods’ total traded capital on the ASX, enabling free transfer and trading by shareholders.