Lexaria Bioscience Corp. (NASDAQ:LEXX) announced on Monday the appointment of Michael Shankman as its new Chief Financial Officer, effective October 1, 2024. Shankman, 64, brings extensive experience in financial leadership roles, having served as an outsourced CFO for the company through NowCFO from June 2023 to February 2024.
Shankman replaces Nelson Cabatuan, who resigned on July 15, 2024. With this appointment, Shankman also assumes the roles of principal financial officer and principal accounting officer, responsibilities that were temporarily covered by CEO Richard Christopher following Cabatuan's departure.
The new CFO's background includes a tenure as Corporate Controller for The Articom Group, and prior to that, he was the Controller for Change.Org. Shankman, a Certified Public Accountant, holds an MBA in Finance from California State University and has provided outsourced CFO and Controller services across various industries.
As part of his compensation package, Shankman will receive a base annual salary with provisions for annual increases pegged at 1.25 times the annual inflation rate set by the US Federal Reserve Board. He is also eligible for performance milestone bonuses ranging from 35% to 50% of his base salary over the next years.
Furthermore, he was granted an incentive stock option to purchase up to 50,000 shares of Lexaria's common stock at an exercise price of $3.17 per share, which will vest over a period extending from February 2025 to August 2026.
In the event of termination without cause after an initial six-month period, Shankman is entitled to a severance package starting at two months of base salary, increasing by one month for each completed year of service.
In other recent news, Lexaria Bioscience Corp. has experienced significant changes in its leadership, with the appointment of Richard Christopher as the new CEO and Michael Shankman as the new CFO. These appointments come as Lexaria Bioscience prepares for a period of strong growth. The company has also entered into a Material Transfer Agreement with PharmaCO for pre-clinical trials of its patented drug delivery platform, DehydraTECH.
Preliminary results from Lexaria's human pilot study indicate a trend toward higher absorption of DehydraTECH-processed Rybelsus. An ongoing animal study suggests potential benefits in diabetes management and weight loss efficacy through DehydraTECH technology. In the wake of these developments, analysts from H.C. Wainwright have maintained their Buy rating for Lexaria Bioscience, acknowledging the potential impact of DehydraTECH technology on obesity and diabetes treatment.
InvestingPro Insights
As Lexaria Bioscience Corp. (NASDAQ:LEXX) welcomes Michael Shankman as its new CFO, investors may find additional context from recent financial data and expert insights. According to InvestingPro, LEXX has shown impressive revenue growth of 34.05% over the last twelve months as of Q3 2024, which aligns with the InvestingPro Tip that analysts anticipate sales growth in the current year. This positive trend could provide a solid foundation for the new CFO to build upon.
Despite the revenue growth, InvestingPro data indicates that LEXX is not currently profitable, with an operating income margin of -1134.78% in the same period. This is consistent with another InvestingPro Tip suggesting that analysts do not anticipate the company to be profitable this year. Shankman's experience may be crucial in navigating the company towards profitability.
On a positive note, LEXX holds more cash than debt on its balance sheet, which could provide financial flexibility as the company pursues its growth strategies. Additionally, the stock has demonstrated a strong return over the last year, with a price total return of 227.46%, potentially reflecting investor optimism about the company's prospects.
For readers interested in a more comprehensive analysis, InvestingPro offers 5 additional tips for LEXX, providing a deeper understanding of the company's financial position and market performance.
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