2 Cheap directors quit
Two directors of NZ Automotive Investments (NZAI), which owns 2 Cheap Cars, have resigned from the board.
The NZX-listed company has announced the departure of chairman Karl Smith, pictured, and director Michele Kernahan.
Kernahan’s resignation was effective immediately while Smith’s will kick in when a replacement independent director was appointed.
He stepped down as chairman on April 8 when director Charles Bolt was appointed interim chair.
Smith joined the board in September 2020 ahead of its direct listing on the NZX’s main board in February 2021, while Kernahan became a director on listing.
The company says Smith believed it was the right time to step down having guided the business from private to public ownership. He is also focusing on expanded roles as director of VetNZ and chairman at FortHill property.
Kernahan was said to be rationalising her governance commitments and had a new executive leadership role starting this next week. She was also appointed an independent director at Balance Agri Nutrients late last year.
In a statement to the NZX, the company says: “Both Karl and Michele have worked extensively as members of the new board and with new management in transitioning the company from private ownership to publicly listed status.
“The board is grateful for the contributions they have made to NZAI, and thanks them for their commitment to the company and wishes them well in their new ventures.”
As a direct listing, NZAI did not issue any new securities, but its 45.5 million shares were priced at $1.30 each, valuing it at just over $59m. Since then, its share price has struggled, falling as low as 79c in November.
The company’s co-founder Eugene Williams sold $3.9m of shares in September in a bid to increase engagement in the stock and its liquidity, reports NBR.
That sale was completed at an offer price of 93c a share, a 15 per cent discount to its last closing price at the time. Up to $5m had been offered or about 10 per cent of NZAI’s total market capitalisation at the time.
