Standard Premium Finance Holdings, Inc. Announces Formal Commitment to Further Strategic Growth by Renewing Five-Year Employment Contracts and Lock-up Agreements

Rhea-AI Summary

Standard Premium Finance Holdings (OTCQX:SPFX) announced that CEO William Koppelmann and CFO Brian Krogol signed five-year employment contracts. These executives will receive stock options and performance-based compensation in line with the company’s growth strategy. Additionally, all officers and directors are extending their stock lock-up and non-compete agreements, offering security for new investors. Koppelmann deferred salary after the company's conversion from an S to a C Corporation, allowing Standard to bolster retained earnings and attract new investors. The company is focused on expanding its market presence and mergers.

Positive

• Renewed five-year contracts for CEO and CFO indicate strong management stability.
• Stock options and performance-based compensation align executive interests with company growth.
• Extended stock lock-up agreements provide security for new investors.
• Transition to a C Corporation has strengthened retained earnings, enhancing investment opportunities.

Negative

• None.

News Market Reaction – SPFX

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MIAMI, FL / ACCESSWIRE / July 8, 2022 / Standard Premium Finance Holdings, Inc. ("Holdings") (OTCQX:SPFX) announced today that its Chief Executive Officer, William Koppelmann, and Chief Financial Officer, Brian Krogol, agreed to sign five-year employment contracts. These members of our senior management will receive well-deserved stock options through the Company's Equity Incentive Plan, as well as performance-based compensation that aligns with the company's growth strategy.

Additionally, all officers and directors have agreed to reciprocate by extending their current stock lock-up agreements as well as non-compete contracts, securing the brain trust and proprietary trade secrets of the Company. The extension of these stock lock-up agreements provides additional security for new investors who will not have to be concerned about competing for liquidity with insiders for an additional year. These lock-up agreements were originally volunteered by officers and directors beginning in December 2021.

William Koppelmann, Standard's Chairman and CEO is determined to ramp up earnings and increase his equity. He encourages the creation of personal wealth for the sales representatives and executives by operating one of the only premium finance companies that provides stock ownership and a public market for its stock. For the past five years, Mr. Koppelmann deferred additional salary after Standard converted from an S Corporation to a C Corporation. Notably, an S Corporation must constantly pay out large portions of its profits, which stifles growth. As a C Corporation, Standard has bolstered its retained earnings to attract new investors and increase credit lines, aligning with the primary reasons the Company went public. During these transformative years, Mr. Koppelmann has increased his equity as the leader who continues to recruit successful marketing representatives with equity signing bonuses vested over the life of their employment as the company expands into additional markets while seeking opportunities for additional market share through mergers and acquisitions. "We have spent many years building this small regional company into an emerging national power. I firmly believe that through times of growth, management has a duty to perform in the best interest of our shareholders. During these times, one has to sacrifice personal gains for the long-term health and strategy of the company to achieve our long-term goals. It was extremely personal to me that those loyal individuals who bought into this philosophy be rewarded for their service and sacrifice in the form of options and warrants as signing or performance bonuses." Mr. Koppelmann said.

About Standard Premium Finance Holdings, Inc.

Standard Premium Finance Holdings, Inc. is a premium finance company providing premium finance solutions to businesses and individuals. With over 200 collective years of premium finance experience, Standard Premium Finance is best positioned to consult and assist our valued partner agents and client base on every aspect of premium financing. Standard is an industry-leading premium finance company with annual loan originations of approximately $120 million with loans ranging from $500 to over $500,000.

For more information, contact Media Relations at info@standardpremium.com.

SOURCE: Standard Premium Finance Holdings Inc.

View source version on accesswire.com:
https://www.accesswire.com/708022/Standard-Premium-Finance-Holdings-Inc-Announces-Formal-Commitment-to-Further-Strategic-Growth-by-Renewing-Five-Year-Employment-Contracts-and-Lock-up-Agreements

FAQ

What did Standard Premium Finance Holdings announce on July 8, 2022?

On July 8, 2022, Standard Premium Finance Holdings announced the signing of five-year employment contracts for its CEO and CFO, along with extended stock lock-up agreements.

What are the benefits of the management's new contracts for investors in SPFX?

The new contracts include stock options and performance-based compensation, aligning the management's interests with the growth of Standard Premium Finance, which can enhance investor confidence.

How have the stock lock-up agreements changed for Standard Premium Finance?

The stock lock-up agreements for all officers and directors have been extended, providing additional security to new investors by minimizing potential liquidity competition.

What impact did transitioning to a C Corporation have on Standard Premium Finance Holdings?

Transitioning to a C Corporation has allowed Standard Premium Finance to bolster its retained earnings, facilitating opportunities for attracting new investors and increasing credit lines.