Internet of Stings at Xped as CEO resigns and directors clear out
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Tech play Xped lost 9 per cent of its value today after a board clear-out in which the chief executive and managing director resigned as well as two other directors.
Athan Lekkas — who was replaced as chairman by Peter Hunt earlier this month — resigned as CEO but will remain a director.
Xped (ASX:XPE) describes itself as an “Internet of Things” (IoT) specialist.
IoT is a much-ballyhooed concept that refers to machine-to-machine communication — in other words devices talking to other devices.
Xped traded as high as 16c back in May 2016 after a series of announcements including a technology that enabled smartphones to tap a device and take control of it.
Since then the shares have been in steep decline, bottoming out today at 0.9c before closing the day down 9 per cent at 1c.
Managing director Martin Despain and directors Wenjun Sheng and John Schultz resigned today, though Mr Despain and Mr Sheng will remain as consultants.
“The company believes that significant cost savings and business development benefits will be realised immediately by the re-organisation, while simultaneously freeing up Athan, Martin, and Wenjun to focus on their critical business development roles within Xped’s operations,” Mr Hunt told investors.
Cost-cutting measures would save $1 million this year, he said.
Earlier this month, Xped said it expected revenue to more than double from $1.2 million to $2.5 million this financial year.
“The board’s immediate strategy is addressing the cash burn and to focus on identifying products and opportunities that can be prioritised to generate income in the short term,” the company said at the time.
Xped expected to update the market “in due course” on opportunities in healthcare, smart home, smart building and smart energy, Mr Hunt said today.