The Murray River Organics Pty Ltd (ASX: MRG) share price was trading more than 3% higher at 31 cents when the market closed today.
Shares in the food producer share price rose after the company announced it was selling one of its properties and appointing a new CEO.
Today share price lift compared well against the 0.8% drop in the S&P/ASX All Ordinaries Index.
Let's take a closer look at what's driving the Murray River Group share price.
CEO appointment
The company advised that interim chief executive officer Birol Akdogan has been appointed its new CEO.
Mr Akdogan has also spent time in the position of group chief financial officer. Before his employment at Murray River Group, he held positions as CFO at Ansell Limited (ASX: ANN) and CPI Group.
Commenting on the appointment, Murray River Group chair Andrew Monk said:
We believe that Birol has the necessary vision and skills to navigate [Murray River Group] through the next evolution of our business. His experience in tight cost control management in the [fast-moving consumer goods] market sector and his [mergers and acquisitions] experience in a large international company combine to give him the skill set to progress [Murray River Group]'s strategic plans.
Mr Akdogan added:
I am excited about the challenges that this opportunity affords me and look forward to reshaping the business to deliver value and profitability to shareholders and to see our branded products. grow and gain even more recognition on the shelves of our supermarkets and health stores.
Property sale
In today's second announcement, the group advised it has sold its Gol Gol Property for $5 million, being $4.75 million for the property and $250,000 for the citrus crop within. The unconditional sale will be settled by the end of March 2021. Under the terms, Murray River Group will continue farming the land until the end of the harvest season, 15 May 2021.
The group said it expected to sign a 5-year grower supply arrangement with the new owner.
New CEO Akdogan said of the deal:
The Gol Gol property is predominantly a conventional citrus farm. The sale represents a great outcome for our shareholders with management now better able to focus on our fast-growing MRO branded organic retail products.
Over the last 6 months, we have secured over $15m of non-core asset sales as part of our ongoing turnaround strategy. With interest rates low, there is strong demand for Australian farming assets, and we are assessing opportunities to maximise shareholder value through our asset realisation program.
Murray River Group share price snapshot
The Murray River Group's share price has been on a downward trajectory over the past 12 months, falling 44.5%. This time last year, shares in the company were swapping hands at 55 cents.
Given today's closing price of 31 cents, shares would need a 94% gain to draw level with that price.
Murray River Group's market capitalisation is $13.5 million.
