Something has gone badly wrong at Freedom Foods, the listed cereals, snacks, and dairy company after the Chief Financial Officer resigned on Tuesday and the CEO went on a surprise holiday yesterday and trading in the shares was suspended.
In requesting a halt, the company told the ASX “The trading halt is requested pending a further announcement concerning its financial performance. The trading halt will remain in place until the morning of Friday 26th June.”
That news rattled confidence and the shares slumped 20% to a day’s low of $2.75 before closing down 14.5% at $3.012. The shares are down 41% year to date as the rebound has passed freedom by.
The shares were trading around $5.21 in late January and it has been all downhill since then.
That’s an indication the market is worried about the company’s financial health. Now those fears have been added to.
That was after it told the ASX that “the Managing Director and CEO, Mr. Rory Macleod, is on leave pending a further announcement that is expected to be made early next week.”
“Mr. Perry Gunner has been appointed Executive Chairman (he was previously chairman).
“The Board has appointed Mr. Brendan Radford, Commercial Director, as Acting CEO. Mr. Radford is a former Managing Director – Australasia of Rockstar Energy Drink and has 18 years’ international FMCG experience.
“The Board has also appointed Ms. Stephanie Graham, Group General Manager Corporate Development, as Acting Chief Financial Officer, whilst the Board is evaluating permanent appointment processes.
On Tuesday Freedom said Campbell Nicholas had resigned as Chief Financial Officer and Company Secretary of Freedom Foods that day (June 23).
The June 23 statement made no mention of any problems with finances.
A day later there is and market rumours suggest the company has a revenue and asset value problem with big write-downs coming.
