AirXpanders sales are flat, it’s looking for a new CEO, and now its shares are plunging
AirXpanders is looking for a new chief, saying it needs a new top dog to level up in the US and that first quarter sales were flat.
The company’s shares plunged 40 per cent to 24c by lunchtime.
Scott Dodson’s resignation from his roles as president and CEO, which he has held since 2010, came in today.
AirXpanders(ASX:AXP) has hired a recruiter to help it locate its next chief.
CFO and COO Scott Murcray is taking over for now.
“We appreciate Scott Dodson’s efforts in leading AirXpanders through the early clinical trials in Australia and the US, the Initial Public Offering, FDA clearance and the launch of AeroForm in Australia and the US,” AirXpanders chairman and cofounder Barry Cheskin said.
He noted a reduced cash burn and a clear path to profitability as benefits he expects from a new CEO.
“The board believes that bringing on a new CEO at this time will help drive the business in this next phase, including refining and improving the effectiveness of our sales model while achieving operating cost efficiencies to reduce our quarterly cash burn and provide a clearer path to profitability.”
The company plans to create an operating advisory committee to “help guide the management team to accelerate operational progress”.
AirXpander’s quarterly cash burn in December last year was $7.6 million and expected spending to hit $9.1 million in the March quarter.
“The company had a cash balance at the end of the quarter of approximately $US13.6 million which the company believes is sufficient to fund its operations through 2018,” it said on Monday.
In the last 12 months the company has set up a new manufacturing facility in Costa Rica and launched their product, a patient-controlled breast tissue expander for women who’ve had mastectomies, in the US.
In its full year report in February the company said it made $US3.9 million in revenue, mainly from the US, and sold 1143 units in that country mostly in the last quarter of 2017.