Rapid Technology Group said yesterday it had granted new share options to its founder, Mr Pat McDonagh, in exchange for bank guarantees and security for financing.

"The board has agreed to subscribe for a total of 461,648 new ordinary shares [representing 2 per cent of the company], of which Mr McDonagh may subscribe for 230,824 new ordinary shares . . . at £2.10 sterling per share," the company said.

The shares were trading yesterday in London at £5 each, giving Mr McDonagh an instant paper gain of £669,390 sterling (€1.1 million).

Mr McDonagh is also a founder of Riverdeep, the educational software group that is set to float on the Dublin and Nasdaq stock markets. If the company is successful in the flotation, Mr McDonagh's shares in that company will be worth around $265 million (€265 million).