CCP tries to dig itself out of a hole, sheds CEO and COO
CCP Technologies is looking for a new CEO and COO.
Chief Mike White has resigned as CEO and director but will stay on as a consultant for business development.
COO Anthony Rowley has also resigned.
Neither man gave a reason for their departure but CCP chairman Leath Nicholson told investors the board had decided it need to “make some key changes” to cut costs and to successfully win the deals in their current pipeline.
Both participated in the recent share purchase plan, which raised a paltry $240,500 of a desired $750,000.
The problem is that CCP (ASX:CT1) has almost run out of money and tried to bolster those reserves with a failed crypto deal.
It expects to spend $520,000 this quarter but only has a cash buffer of $162,000 and made, in the December quarter, $147,000.
The company has consistently struggled to make money out of an array of products including wireless temperature monitoring devices, data collection and analysis, “contract development”, and licensing an Internet of Things (IOT) platform that connects IOT devices.
Since CCP backdoor listed into a company called Agenix in late 2016, it has raised $4.1m from investors.
Since that backdoor listing, in the 2017 and 2018 financial years it’s made $474,562 in revenue.
The telling point came in July last year, when CCP ventured out of IOT and into cryptocurrency.
Penta Global Blockchain Foundation invested over half a million dollars — in crypto.
CCP then had to explain to the ASX that not only did they obtain advice that it was legal, but that Penta wouldn’t get its shares until the company had sold the PNT tokens.
It also had to admit that at the time of the investment, the PNT tokens had only fallen in value since they were issued a couple of months prior.
Unfortunately for CCP’s money woes, by the time it had sold all of the tokens in December the total sum only reaped a meagre $97,804 — not the $561,247 they’d been promised.
Mr Nicholson told investors they’d be keeping the existing operations that deliver subscription revenue from the wireless tags and the contract work for third parties, following a review of the strategy, pipeline of sales and costs.
They’re also looking for things to buy that might add to the current IOT suite of products.
CCP has been contacted for comment.
CCP shares dropped 10 per cent on the news to 0.9c.