FREYR Battery, Inc. (NYSE:FREY), a manufacturer of electronic components and accessories, has announced the appointment of Daniel Barcelo as its new Chief Executive Officer, effective immediately. This strategic move was reported in the company's latest 8-K filing with the Securities and Exchange Commission.
The decision, made by the Board of Directors on Monday, follows a previous announcement on November 6, 2024, that Barcelo would take the helm of the company. On Sunday, November 17, 2024, FREYR Battery confirmed an annual base salary of $800,000 for Barcelo as CEO, with his remuneration effective from November 4, 2024. Additional terms of his compensation package are still being negotiated and will be publicly disclosed once they are finalized.
Barcelo's new role as CEO will not include extra compensation for his concurrent service on FREYR Battery's Board of Directors.
In other recent news, FREYR Battery 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. The company maintained a strong cash position of $253 million with no outstanding debt. FREYR Battery also terminated its licensing agreements with 24M Technologies, relinquishing all rights to approximately 6.98 million shares of 24M's Series G preferred stock. Concurrently, the company 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.
InvestingPro Insights
As FREYR Battery welcomes Daniel Barcelo as its new CEO, InvestingPro data provides additional context to the company's current financial position. FREYR's market capitalization stands at $302.76 million, reflecting its position in the electronic components industry. The company's Price to Book ratio of 0.56 suggests that the stock might be undervalued relative to its book value.
InvestingPro Tips highlight that FREYR holds more cash than debt on its balance sheet, which could provide financial flexibility as Barcelo takes the helm. However, the company is quickly burning through cash, a factor that the new CEO will likely need to address. This cash burn rate aligns with the fact that FREYR is not currently profitable, with a negative EBITDA of -$116.68 million over the last twelve months.
Despite these challenges, FREYR has shown strong short-term market performance, with a 100% price return over the last month and a 72.13% return over the last three months. This recent stock momentum could provide a positive backdrop for Barcelo as he begins his tenure.
Investors considering FREYR should note that InvestingPro offers 12 additional tips for this stock, providing a more comprehensive analysis of the company's prospects under its new leadership.
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