Why the Ellex Medical Lasers share price crashed lower today

Here's why the Ellex Medical Lasers Ltd (ASX:ELX) share price crashed lower on Friday…

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In morning trade the Ellex Medical Lasers Ltd (ASX: ELX) share price has crashed lower.

At the time of writing the medical technologies company's shares are down a sizeable 8% to 56 cents.

Why did the Ellex Medical Lasers share price crash lower?

This morning Ellex announced the appointment of Ms Maria Maieli as its interim chief executive officer, effective July 19 2019.

Ms Maieli was appointed after the company's current chief executive officer, Ged Wallace, informed the board of his decision to resign with immediate effect.

According to the release, Ms Maieli has over 25 years of senior financial management experience in public and private companies and has been with the company since 2011. Her most recent role was the company's chief financial officer and company secretary.

The company's chairman, Victor Previn, commented: "On behalf of the Board of Directors, we greatly appreciate Maria's acceptance of the Interim CEO role at Ellex. Maria has an excellent understanding of the complexities of our business at a regional and global level and has significant experience in managing our various operations and sales functions. Maria will be supported by other senior executives of Ellex in fulfilling this role."

The Ellex board will now commence an executive search process to identify and appoint a permanent chief executive officer as soon as practicable.

Trading update.

That wasn't the only thing the company announced this morning. Ellex also provided an update on its unaudited preliminary financial results for FY 2019.

The release explains that group sales increased 3% on the prior corresponding period to $82 million. This was driven by a 29% increase in the worldwide sales of its iTrack product, which offset a decline in Lasers & Ultrasound product sales.

In respect to underlying EBITDA, the company expects to post a loss of between $0.7 million and $0.8 million, excluding restructuring costs of approximately $0.3 million.

Elsewhere on the market today, the National Australia Bank Ltd (ASX: NAB) share price has charged higher after appointing its new CEO and the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has edged lower following its latest traffic update.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of Ellex Medical Lasers Limited and National Australia Bank Limited. 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 Scott Phillips.

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