Fusion Antibodies Awards 2.91 Million Share Options at 10.3p Exercise Price to Directors and Staff

Executive Director Share Option Allocations: CEO and CSO Receive Major Awards

Out of the total 2,910,000 options granted, 1,000,000 were allocated to Executive Directors. Adrian Kinkaid, Chief Executive Officer, was awarded 600,000 options, increasing his total option holdings to 1,500,000 shares when combined with his prior 900,000 options. Richard Buick, Chief Scientific Officer, received 400,000 options, bringing his total to 1,080,000 options from a previous 680,000.

This disclosure highlights management’s equity stake and alignment with shareholder interests through incentive arrangements. The remaining 1,910,000 options were granted to selected employees, though individual employee allocations beyond Executive Directors were not detailed.

Exercise Price of 10.30 Pence Reflects Market Valuation as of July 2026

The exercise price of 10.30 pence per option corresponds to the closing mid-market price on 17 July 2026, the business day prior to the grant date of 20 July 2026. This ensures the exercise price accurately reflects the prevailing market valuation at grant, a common practice in equity incentive plans designed to maintain genuine motivation for option holders. Given the 4 pence nominal share value, the exercise price represents a substantial premium over par.

Using the prior business day’s closing price as the benchmark provides an objective market-based reference aligned with regulatory and governance standards. The fixed exercise price remains constant throughout vesting and exercise periods, allowing option holders to benefit if the share price rises above 10.30 pence during the ten-year exercise window.

Three-Year Vesting with Equal Annual Tranches Encourages Retention

The options vest in three equal installments annually over three years, contingent on continuous employment. This structure is typical in employee share schemes aimed at promoting retention and long-term alignment with company performance. Beneficiaries must remain employed by Fusion Antibodies to receive each tranche. Once vested, options can be exercised anytime within a ten-year window from the grant date.

This staggered vesting supports retention by distributing incentive value over multiple years. The extended ten-year exercise period offers recipients flexibility in timing option exercise, potentially enhancing the compensation’s attractiveness.

About Fusion Antibodies: AIM-Listed Specialist CRO

Fusion Antibodies plc is a Belfast-based contract research organisation specialising in antibody engineering services for therapeutic and diagnostic applications. Founded in 2001 as a Queen's University Belfast spin-out, it joined AIM on 18 December 2017. Services include antibody generation, development, production, characterisation, and optimisation, featuring proprietary humanisation technology via its CDRx™ platform and stable cell line production for clinical trials.

Since 2012, Fusion has sequenced or expressed over 750 antibodies and completed more than 250 humanisation projects, serving a global client base including eight of the top ten pharmaceutical companies by revenue. Its growth strategy integrates technology and science to accelerate drug development timelines for pharmaceutical and biotech partners.

Employee Share Option Scheme and Regulatory Compliance

The options were granted under the Fusion Antibodies EMI and Unapproved Employee Share Option Scheme, adopted on 11 December 2017. The EMI scheme is a UK HMRC-approved tax-advantaged plan encouraging employee share ownership in growing companies. The Unapproved element provides flexibility beyond EMI limits on share option grants.

The announcement complies with UK Market Abuse Regulation (MAR) disclosure requirements, detailing grants to persons discharging managerial responsibilities and closely associated individuals. This transparency ensures investors are informed of insider transactions, aligning with governance standards for listed companies.

Post-Grant Impact: Options Represent 4.86% of Issued Share Capital

Following this grant, Fusion Antibodies has options outstanding over 6,086,600 ordinary shares, equating to 4.86% of the total issued share capital. This figure indicates potential dilution if all options are exercised and is within typical ranges for AIM-listed companies using equity incentives.

The disclosed option overhang provides investors with insight into dilution risks and the Company’s approach to incentivising and retaining talent through share-based compensation. Future changes in this percentage will be monitored as options vest or new grants occur.

Market Abuse Regulation Disclosure and Investor Engagement

The announcement identifies Adrian Kinkaid as Director and CEO, and Richard Buick as Director and CSO, fulfilling MAR requirements for transparency on managerial transactions. Fusion Antibodies also offers investor contact details for CEO Adrian Kinkaid and CFO Stephen Smyth, along with corporate advisers and brokers information. Investors are encouraged to engage via the dedicated investor hub at https://investorhub.fusionantibodies.com/link/rJaa9e, reflecting the Company’s commitment to open communication.

Strategic Importance of Share-Based Incentives in a Specialist CRO

For Fusion Antibodies, retaining key scientific personnel through equity incentives is strategically vital. The Company’s competitive edge relies heavily on expert antibody engineering talent and proprietary platforms like CDRx™. Share options align employee interests with shareholder value and help retain experienced scientists amid competition from pharmaceutical and biotech sectors.

The grant of 2,910,000 options, including 1,000,000 to Executive Directors, underscores management’s dedication to fostering shared ownership and long-term commitment. The three-year vesting with employment conditions supports retention during a critical phase. Given Fusion’s role supplying top-tier pharma clients, maintaining its scientific workforce is essential for sustained growth and competitive positioning.

Investor Considerations and Future Outlook

Investors should monitor vesting milestones occurring annually through July 2029, as one-third of options vest each year. Share price performance relative to the 10.30 pence exercise price will influence the options’ intrinsic value and potential impact on retention if exercised or retained.

No specific financial or strategic performance conditions beyond continued employment were disclosed. Investors may seek further details from governance documents or future announcements. The ten-year exercise window offers substantial flexibility for option holders to time realisation, potentially preserving value amid share price fluctuations.