Here’s why the 3P Learning Ltd share price fell 16%

Credit: Alex Proimos

The 3P Learning Ltd (ASX:3PL) share price nosedived 16% this morning following the resignation of CEO, Tim Power.

The online education provider said Mr Power will step down immediately to “pursue new opportunities”. In his absence, Chief Financial Officer and Company Secretary, Jonathan Kenny, has been appointed interim CEO, while an international search takes place for a full-time replacement.

“Jonathan has played an integral, hands-on role in the development of the company’s strategy and will ensure continuity and focus on delivery while an international search for a new CEO is conducted,” Chairman Sam Weiss said. “The Board respects Tim’s decision to pursue interests outside the company and we would like to acknowledge his contribution to the field of online education.”

Mr Power holds around $5.16 million of 3P Learning shares and is the only director of the 3P Learning board to have such a significant stake in the business. “I’d like to thank the talented 3PL team for their creativity and tenacity, and wish them every success,” Mr Power said.

Mr Power will be entitled to a payment in lieu of the six-moth notice period and a payment equivalent to six months’ salary as a condition of the non-compete obligations in his original contract, the company said.

“3PL is a great company with a unique opportunity to grow in the global online education market and I am very pleased to be in a position to lead the business while a CEO search is concluded” Mr Kenny said.

3P Learning is a $226 million online learning provider with ownership of services such as Mathletics, Spellodrome, Reading Eggs and IntoScience.

Don't miss your chance to "invest like a Pro"...

Motley Fool Pro -- our most comprehensive and innovative ASX investment service -- will reopen for a brief time, to accept new members. That means you've got the chance to follow along as one top investor puts $1,000,000 of The Motley Fool's own money to work...all in ASX stocks. And you're invited to watch everything that goes into our decision -- 100% FREE! We've dubbed this innovative project, Motley Fool Pro. Click here to step inside for an exclusive look around - it's FREE!

Motley Fool writer/analyst Owen Raszkiewicz has no position in any stocks mentioned.

Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.