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FREYR Battery announces executive shake-up

EditorIsmeta Mujdragic
Published 11/14/2024, 08:46 AM
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FREYR Battery, Inc. (NYSE:FREY), a Delaware-based manufacturer in the electronic components sector, has announced the immediate termination of its Chief Operating Officer (COO), Michael Brose, as of last Thursday. The company communicated this change in a filing with the Securities and Exchange Commission (SEC) today.

According to the SEC filing, Brose's departure coincides with the appointment of David Gustafson as the new COO, a move that was contingent on the closing of FREYR's recent transaction with Trina Solar (Schweiz) AG. This strategic change was initially disclosed on November 6, 2024, a day before Brose's termination.

The company's filing did not provide details on the reasons behind Brose's sudden exit or any information regarding severance or transitional arrangements.

This executive transition comes at a time when FREYR Battery is navigating the complexities of the electronic components and accessories market. The company's recent dealings with Trina Solar (Schweiz) AG suggest an ongoing strategy to bolster its operations and market presence.

This report is based on a press release statement and provides the latest factual information regarding FREYR Battery's executive team adjustments.

In other recent news, FREYR Battery has announced several significant developments. The company reported a net loss of $29 million in Q1 2024 and a narrower-than-expected loss of $27 million in Q2 2024, outperforming analysts' projections. Despite these losses, the company maintained a strong cash position of $253 million with no outstanding debt.

In a major corporate move, FREYR Battery terminated its licensing agreements with 24M Technologies, relinquishing all rights to approximately 6.98 million shares of 24M's Series G preferred stock.

The company also secured a €122 million grant from the European Union Innovation Fund for a joint venture Cathode Active Material manufacturing project in Finland, with finalization expected in the first quarter of 2025.

CEO Tom Jensen's employment terms were finalized, with Jensen set to continue his role until the 2025 annual meeting of stockholders. The company also extended its consulting agreement with director Peter Matrai until July 30, 2025.

These recent developments highlight FREYR Battery's strategic focus on leadership and financial stability.

InvestingPro Insights

FREYR Battery's recent executive shakeup comes amid a period of significant stock performance and financial challenges. According to InvestingPro data, FREY has seen a remarkable 109.8% price return over the past month and a 65.89% return over the last three months, indicating strong recent investor interest despite the company's operational hurdles.

InvestingPro Tips highlight that FREYR is trading at a low Price / Book multiple of 0.55, suggesting the stock may be undervalued relative to its assets. This could be particularly relevant as the company undergoes leadership changes and strategic shifts. However, the tip that FREYR is "quickly burning through cash" aligns with the company's current non-profitable status and negative operating income of -$125.13 million over the last twelve months.

For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for FREYR Battery, providing a deeper understanding of the company's financial health and market position during this transitional period.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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