The Lark Distilling Co Ltd (ASX: LRK) share price is freefalling during Wednesday morning trade.
During market open, the whisky producer's shares hit an intraday low of $3.48, before slightly bouncing back.
At the time of writing, Lark shares are now changing hands at $3.60, down 20.88%.
Lark CEO shock resignation
Investors are selling off Lark shares following the unexpected announcement regarding its most senior leader.
In a statement to the ASX, Lark advised that its managing director and CEO, Geoff Bainbridge has tendered his resignation.
The reason given as to why Bainbridge has decided to depart the company is due to a personal matter. This was brought to the attention of the board late yesterday afternoon.
The personal matter relates to an ongoing extortion saga involving Bainbridge, which was exposed in The Australian newspaper this morning.
The newspaper reported it had obtained a video of Bainbridge in which he appears to be engaging in drug use, and also using explicit language.
Lawyers representing Bainbridge were quoted by the paper saying he is "the subject of a continuing, sophisticated and recently intensified extortion attempt by persons overseas using manipulated unverified images".
Further, the lawyers said: "The attempted extortion of Mr Banbridge commenced years before he had any involvement in Lark Distillery…"
What happens now?
The immediate effect of Bainbridge's resignation will see current non-executive director, Laura McBain assume the role on an interim basis.
McBain's previous experience includes CEO and managing director of ASX-listed Bellamys from 2014 to 2017. Prior to this, McBain held the title of CEO/general manager of the infant formula company from 2007 to 2014.
During her time, McBain was responsible for change, innovation and business growth including expansion into South East Asia and China.
McBain also held the title of managing director of Maggie Beer from 2017 to 2019, and former non-executive director of Export Finance Australia from 2014 to 2020.
Lark stated that it had already begun its global CEO search in December 2021 as part of its succession planning. The process will now be accelerated to find a permanent replacement for the top job.
About the Lark share price
Over the last 12 months, the Lark share price has surged to register a gain of 116% for investors.
The company's shares accelerated from July to mid-October, reaching a 52-week high of $5.60. Since then, its shares have gradually declined under the $5 mark before sinking to $3.60 today.
Lark commands a market capitalisation of roughly $271 million, with approximately 75.28 million shares on its registry.
