The CV Check Ltd (ASX:CV1) share price is crashing lower on Monday following the surprise exit of its CEO with immediate effect…
The post Why the CV Check (ASX:CV1) share price is crashing 18% lower today appeared first on The Motley Fool Australia. –
The CV Check Ltd (ASX: CV1) share price has been a disappointing performer on Monday.
In afternoon trade, the screening and verification services provider’s shares are down 7% to 13 cents.
This is actually a big improvement from earlier in the day. During morning trade the CV Check share price was down as much as 18% to 11.5 cents.
Why is the CV Check share price crashing lower?
Investors have been selling CV Check shares on Monday after the release of a surprise announcement this morning relating to its leadership.
According to the release, the company’s CEO and Executive Director, Rod Sherwood, has announced his resignation for personal reasons and has immediately stood down from regular duties.
However, Mr Sherwood will remain available to assist CV Check through the transition period, if necessary.
In the meantime, the company’s Independent Chair, Mr Ivan Gustavino, will be acting as Executive Chair whilst the company undertakes a widespread search for a CEO to take it on the next stage of its journey.
Mr Sherwood believes that the company is in ideal shape and primed for growth, making now an opportune time to step away.
He said: “I am immensely proud to have led The Company over the past four and a half years. Having just completed the Bright transaction, the Company is now in ideal shape, with record revenues, primed for growth with exciting new opportunities available and $14.8m in cash as at the end of March.”
“The next few months will offer the CV1 group a time for an inward focus as the CVCheck and Bright businesses get to know each other and successfully integrate and align. This is a time for change and renewal, which affords the ideal opportunity for me to step away from the business and allow CV1 group time to search for a new CEO who will lead it into the promising future I know lies ahead. I will, of course, be available to assist the Company through the transition, if required.”
Mr Gustavino spoke positively about the outgoing CEO’s tenure and the company’s outlook.
He said: “Rod has served The Company for almost 10 years, putting a great deal of energy and effort into steering the Company to an ideal position for future growth. He departs with the great thanks and best wishes of all in the Company. The board is confident it has the management structure and organisational resilience to continue our record of organic growth whilst the Board recruits a new CEO.”
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.