Shares of BioExx Specialty Proteins fell more than 26 per cent on Monday, after the company asked chief executive Chris Carl to step down and named chief financial officer Chris Schnarr as interim CEO.
The shuffle comes as BioExx has stumbled to bring its protein extraction plant, located in Canada’s top canola-growing province Saskatchewan, into commercial production.
“Growth that the market previously viewed as meaningful has stalled over the past 12 months,” National Bank analyst Greg Colman said in a note to clients. “A shift in senior management may be necessary to take BioExx from a technology-commercialization firm to a protein-manufacturing firm.”
The company, which is focused on the extraction of oil and proteins from oilseeds for global food markets, said the timing was ideal for a management change, as the Saskatoon plant is shutdown for planned maintenance and capital projects.
The board will start a search for a permanent CEO to “renew and ensure continued value creation for shareholders”, the company said in a release.
Shares of BioExx were down 26.7 percent at 55 cents on Monday morning on the TSX. They were already down sharply from $2.44 at the beginning of the year, closing Friday at 75 cents, ahead of the management shuffle.
Feds put up $6.4M for canola development work, Sept. 24, 2009
Toronto oilseed processor to build in N.D., July 24, 2009
Canola crusher inks supply deal with Viterra, May 14, 2008