It's been an interesting day for the Bubs Australia Ltd (ASX: BUB) share price so far this Wednesday. Bubs shares closed at 18.5 cents each yesterday afternoon and opened at that same level this morning. However, the infant nutrition company initially jumped this morning, climbing to 19 cents a share soon after market open (up 2.7% at the time).
This bouncy performance comes after some big news from Bubs.
Just before market open today, Bubs released an ASX announcement regarding its leadership team. The company revealed that its CEO, Kristy Carr, has been terminated, with immediate effect. This was due to Carr's alleged "failure to comply with reasonable Board directions".
Bubs shares spike on CEO "termination"
Former executive chair Dennis Lim has also been terminated from the company. That's effective immediately. It was only last month that Katrina Rathie was elected chair, replacing Lin.
Carr will be replaced by Richard Paine as interim CEO "until a permanent CEO is confirmed".
Here's some of what the statement had to say on this shake-up:
Noting the recent deterioration in Bubs' financial performance over the half year, the non–executive directors considered the time was right for a change in leadership and to change the governance framework of the company to ensure that it aligns with ASX Corporate Governance Principles and best practice.
On 28 April 2023, Bubs announced that a strategic review of the global business with a particular focus on expenditure management and the Chinese market. The review is on track to be completed by 30 June 2023.
Chair Rathie added the following regarding Carr: "We acknowledge Kristy's long service to Bubs and the role she has played in building the Bubs brand to the position it enjoys today."
So that's all we know for now. But this has certainly been a dramatic day for Bubs Australia.
Judging by the gain in the Bubs share price this morning, it seems investors approve of the decision to axe both Carr and Lin. That's despite the fact we don't know what kinds of "reasonable directions" Carr had apparently failed to follow from the board.
Bubs share price snapshot
The Bubs share price has been on a steep decline for a while now, which always increases pressure on a company's CEO and management team. In 2023 alone, Bubs has lost almost 38% of its value. The company is also down almost 50% from where it was a year ago:
Bubs shares have also lost around 87% of their value since their last all-time high, which we saw back in May 2019.
At the current Bubs share price, this ASX company has a market capitalisation of $139 million.
