Permex Petroleum Corporation Enters Separation Agreement and Grants Stock Options to CEO

Permex Petroleum Corporation, a company based in Houston, Texas, recently made notable changes involving its executive team. In a Form 8-K filing with the Securities and Exchange Commission on August 30, 2024, Permex Petroleum Corporation disclosed two significant events.

The company finalized a Separation Agreement with Mehran Ehsan, who served as the Chief Executive Officer from August 1, 2017, to April 29, 2024, and subsequently held the position of Vice President of Business Development until August 30, 2024. The terms of the agreement include a lump sum payment of $100,000, contingent upon the company receiving a capital investment of at least $1,000,000 by October 31, 2024, or earlier. Additionally, Mr. Ehsan is entitled to six monthly payments of $7,500 beginning October 1, 2024, with the first installment already disbursed. As part of the settlement, a Company vehicle with a fair value of $35,155 will be transferred to Mr. Ehsan. He is also bound by a one-year non-compete agreement in connection with the separation.

The filing further revealed that the Board of Directors approved a grant of Stock Options to Brad Taillon, the current President and Chief Executive Officer of Permex Petroleum Corporation. The options entitle Mr. Taillon to purchase 25,000 common shares of the company at an exercise price of $3.30 Canadian dollars ($2.45 USD based on the exchange rate provided by the U.S. Federal Reserve on October 2, 2024) for a period of ten years from the grant date. These Stock Options, which vest immediately, form part of the Long Term Incentive Plan aimed at promoting the company’s long-term success and shareholder value.

The Long Term Incentive Plan, subject to shareholder approval at the upcoming Annual General Meeting of Shareholders on November 4, 2024, is designed to attract and retain eligible individuals within the company and align their interests with the company’s performance. It allows for the granting of various forms of Incentive Securities, such as restricted share units, performance share units, deferred share units, and stock options, ensuring that the aggregate number of common shares does not exceed twenty percent of the total outstanding shares non-diluted at any point in time.

Both the Separation Agreement and the Long Term Incentive Plan have been filed as exhibits (Exhibit 10.1 and Exhibit 10.2, respectively) with the Securities and Exchange Commission for reference. The company’s Chief Executive Officer, Bradley Taillon, signed off on the report on October 28, 2024.

These recent developments signal a strategic shift within Permex Petroleum Corporation and highlight the company’s commitment to its executives and shareholder value.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Permex Petroleum’s 8K filing here.

Permex Petroleum Company Profile

Permex Petroleum Corporation, a junior oil and gas company, engages in the acquisition, development, and production of oil and gas properties in the United States. The company holds interests in the Pittcock North property, Pittcock South property, Windy Jones property, and Mary Bullard property located in Stonewall County.