MINNEAPOLIS - Lendway, Inc. (NASDAQ:LDWY), a specialty agriculture and finance company, has announced the appointment of Mark R. Jundt and Daniel C. Philp as Co-Chief Executive Officers, effective July 1, 2024. The leadership change comes as the current President and CEO, Randy D. Uglem, prepares to step down from his role on the same date.
Jundt, who has been a member of Lendway's Board of Directors since November 2022 and its Chair since August 2023, brings a wealth of experience in corporate governance, mergers and acquisitions, and litigation. He has also served as General Counsel & Corporate Secretary of Air T, Inc. since 2008.
Joining him in the Co-CEO position, Philp has been a member of the board since November 2022 and has played a significant role in the company's strategic initiatives, including the acquisition of Bloomia, B.V. He has been Senior Vice President of Corporate Development at Air T, Inc. since 2014.
The move to a dual leadership structure reflects the company's focus on administration, corporate governance, and new strategic initiatives, aligning executive skills with the company's requirements. Nick Swenson, a Board member and representative of a group of Lendway stockholders, expressed confidence in the new Co-CEOs' ability to steer the company toward future growth.
Lendway's majority-owned subsidiary, Bloomia, is currently managed by its CEO and 18% minority owner, who has been credited with effectively running the underlying business. Meanwhile, Jundt and Philp's combined expertise in mergers and acquisitions is expected to enhance Lendway's strategic positioning.
As the company prepares for this transition, Jundt acknowledged Uglem's "excellent service" during a period of significant change and expressed enthusiasm for the company's next chapter.
Lendway's portfolio includes Bloomia, one of the largest producers of fresh cut tulips in the United States, and FarmlandCredit.com, a non-bank lending business focused on agricultural investments both domestically and internationally.
In other recent news, Lendway, Inc. has been making significant changes to its leadership team. The company has announced the appointment of Elizabeth "Biz" McShane as its new Chief Financial Officer. McShane, who brings extensive experience in finance and operations from her previous role at Regis (NASDAQ:RGS) Corporation, is expected to bolster the company's growth strategy.
In addition, Lendway has named William Prescott as the new Sales Manager for its subsidiary, Bloomia. Prescott, who has over fifteen years of experience in sales and marketing, will focus on expanding Bloomia's sales presence in the Western United States. Bloomia, recognized as one of the largest U.S. tulip producers, ships over 90 million tulips annually nationwide.
InvestingPro Insights
As Lendway, Inc. (NASDAQ:LDWY) ushers in a new era of leadership with Mark R. Jundt and Daniel C. Philp at the helm, investors are keeping a keen eye on the company's financial health and market performance. According to InvestingPro data, Lendway has a market capitalization of $8.88 million USD, reflecting the market's valuation of the company as it embraces strategic changes.
One of the noteworthy InvestingPro Tips is that management has been aggressively buying back shares, which could be interpreted as a signal of confidence in the company's future prospects. This coincides with the strategic initiatives that Jundt and Philp are expected to drive forward. Additionally, Lendway's liquid assets exceed its short-term obligations, suggesting a strong liquidity position that could support the company's operations and investment activities.
Investors should note, however, that Lendway is not profitable over the last twelve months as of Q1 2024, with a reported operating income margin of -54.58%. This highlights the challenges the company faces in achieving profitability, despite a significant revenue growth of 230.66% during the same period. The company's gross profit margin stands at 23.58%, a figure that reflects the "weak gross profit margins" mentioned in another InvestingPro Tip.
For those interested in a deeper analysis, additional InvestingPro Tips on Lendway are available, offering comprehensive insights into the company's financial metrics and market performance. For a limited time, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/LDWY, where several more tips are listed to guide investment decisions.
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