CleanTech Lithium Plummets After Suspending CEO Who Loaned Out His Shares
CleanTech Lithium PLC, an exploration and development firm focusing on lithium projects in Chile, has announced the suspension of its CEO, Aldo Boitano, pending an investigation into recent share transfers. The company disclosed that Boitano entered into a loan agreement with a financial institution on August 16, 2023, wherein he provided security over his ordinary shares in the company.
According to the disclosure, between September 8, 2023, and February 6, 2024, Boitano transferred his entire holding of 9,400,002 ordinary shares to a custodian account nominated by the lender. However, he is unable to determine whether these shares were further transferred to a nominee account or sold to third parties by the lender.
Consequently, Boitano cannot disclose his current beneficial holding of ordinary shares or the extent to which his original holding may have been disposed of.
“The granting of security and subsequent transfers of Ordinary Shares are considered notifiable events which should have been notified by Mr. Boitano to the company at the relevant time,” the company said.
The company’s London-listed shares saw a decline of as much as 25% following the news.
Personal loans backed by executives’ shareholdings in their own companies have stirred controversy due to their potential implications. Such arrangements often blur the lines between personal financial matters and company interests, sometimes leading to perceived conflicts of interest or affecting shareholder confidence.
As a result, Boitano has been suspended from his duties as CEO pending further investigation. The board emphasized that Boitano is cooperating with the investigation.
During Boitano’s suspension, Steve Kesler, the current Executive Chairman, will assume the responsibilities of the CEO to ensure continuity in the company’s operations, particularly in its ongoing work program at Laguna Verde.
The company has assured stakeholders that it will provide updates on the situation as the investigation progresses.
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