Corporate: Ever heard of Pyrolyx? Neither had we until this news broke
Temporary Pyrolyx (ASX:PLX) boss Bernhard Meder is putting all of his €110,000 salary into shares, as it closes an almost 12 month fight with a major shareholder and continues to play boardroom musical chairs.
Mr Meder stepped up in June last year after chairman, CEO and founder of the German recycled rubber company, Niels Raeder, quit suddenly just weeks after news of the legal stoush broke.
His cash converts to 20,000 Pyrolyx shares; while the stock is worth just 61c in Australia, they’re worth €4.96 in Germany.
Pyrolyx extracts rCB (recovered carbon black) from old tyres, which is then used to make a range of things such as pigment for paint and films, and rubber.
They listed on the ASX in 2017 with a plan to build a large extraction plant in Indiana — it’s still under construction but they’re sure it’ll be running July 1 this year.
But the IPO came with some hangups: a foreign version of options — a right to buy a share — offered to three financiers in December 2015.
By the middle of 2018 Pyrolyx was at loggerheads with one of the funders, AVIV Investments, over whether a supplementary agreement signed in December 2016 was valid.
The CEO/founder quit, the investor’s board representative Michael Triguboff was appointed as CEO, and today, Pyrolyx relented.
“Pyrolyx has agreed to compensate AVIV for costs and damages in the amount of €760,000 for past management’s failure to honour its contractual obligations to convert the warrants [options, via]… a loan which will accrue interest at 10 per cent per annum and be payable in September 2020.”
The company is trying to clean itself up for the “profitability” expected to come with the start of the Indiana plant, reducing its German stock exchange listings from three to one and sorting out the dual boards.
Pyrolyx is managed by two boards: the management board, which has the CEO, and the supervisory board which has the chair.
Since listing they’ve seen the exit of a whopping eight directors and entrance of eight: new members came and went, Mr Meder swapped back and forth between boards so he could CEO, as did Mr Triguboff.
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