On December 24, 2018, Medibio Limited (ASX: MEB) came forward and made an announcement, through the issuance of a press release, related to the changes which have been done in Board of Directors as well as the plans which are focused towards cutting down costs. The company is in the business of coming up with the tools which focus on the measurement of mental health as well as wellness. The market capitalization of Medibio Limited stood at $4.46 million.
As per the press release which was issued, Mr. Christopher Indermaur would not be acting as the Non-Executive Chairman of Medibio Limited from December 31, 2018. The press release also stated that Mr. Claude Solitario has been decided for the designation of Non-Executive Director of Medibio Limited, effective from 31 December 2018. The incoming Non-executive Director happens to possess a significant amount of experience with regards to development activities focusing on new as well as emerging technology. Mr. Claude has managed to garner more than A$150 million in the form of capital. He has garnered from the public, private as well as government institutions mainly for the purposes of intellectual property development.
Talking about the experience which is being possessed by Mr. Claude Solitario, he happens to have a strong background of the financial space as he has been played the role of the financial executive in numerous private as well as public companies. The top management of the company stated that the addition of Mr. Claude Solitario to the Board of Directors of Medibio Limited would be beneficial for the company because of the expertise which he possesses. Moreover, Medibio Limited would also be helped by the knowledge which he has about the intellectual property of the company. The press release also stated that Mr. Peter Carlisle would be serving the Board’s Interim Chairman. This appointment would become effective from December 31, 2018 and would last till the new Chairman gets decided.
Let us now quickly have a look at the cost reduction plans which have been decided by the company. As per the press release, Non-Executive Directors of Medibio Limited would not be getting the cash compensation with respect to the services which they have rendered. This would be applicable from January 1, 2019. There are plans for the implementation of an equity-based compensation plan which would be for the Non-Executive Directors with regards to the services rendered. From January 1, 2019, the CFO or chief financial officer of Medibio Limited named Brian Mower would be concluding its responsibilities as the CFO. However, from the same date, he would be supporting the company in terms of consulting on an as needed basis. Mr. Steve Sathre would be taking the charge as Interim CFO of the company. The press release issued also stated that effective December 20, 2018, they have even opted for cutdown in the workforce in Minneapolis, MN Headquarters office. The top management of Medibio Limited had stated that the cut down in the costs were important so that the company can easily execute the strategy.
MEB’s share lastly traded at $0.022 per share. The stock price of the company is trading towards the lower level.