In a recent SEC filing, Nxu, Inc. (NASDAQ:NXU), a manufacturer specializing in truck and bus bodies with a market capitalization of $12 million, announced the appointment of Erin Essenmacher to its Board of Directors, effective today. According to InvestingPro data, the company faces significant challenges, with its stock down nearly 57% over the past year and an EBITDA of -$20.4 million in the last twelve months.
The company, headquartered in Mesa, Arizona, and formerly known as Atlis Motor Vehicles Inc., stated that Essenmacher was elected to fill a vacancy on the Board and will also join the Audit Committee.
The Board has determined that Essenmacher qualifies as an independent director under the Nasdaq Stock Market's listing rules. She will serve in this capacity until her successor is elected, or until her resignation or removal.
In line with her appointment, Nxu, Inc. has entered into a Director Agreement with Essenmacher. For the first financial quarter of 2025, she will receive $20,000 in cash compensation. Following this period, and contingent upon the Director Agreement not being terminated, she will receive a quarterly cash stipend of $25,000, starting from the quarter beginning April 1, 2025, through to the quarter starting January 1, 2026, provided she remains a director through the end of each applicable quarter.
The agreement is set to terminate at the earliest of the closing of transactions outlined in a prior Merger Agreement, the 2025 annual meeting of stockholders, or her resignation, removal, or death.
Furthermore, Essenmacher is expected to enter into an indemnification agreement with Nxu, Inc., similar to the form filed with the SEC in the company’s Annual Report for the year ended December 31, 2023.
The filing confirmed that there are no existing arrangements or understandings between Essenmacher and any other persons related to her selection as a director. Additionally, there are no reportable transactions between her and Nxu, Inc. that would necessitate disclosure under SEC regulations.
The appointment of Essenmacher comes as Nxu, Inc. continues to navigate a dynamic automotive landscape, and the company's governance structure evolves to support its strategic direction. With the next earnings report scheduled for February 26, 2025, investors following this development can access 16 additional valuable insights about NXU through InvestingPro's comprehensive analysis tools. This information is based on a press release statement.
In other recent news, Nxu, Inc. and Verde Bioresins, Inc. have announced a definitive merger agreement. The all-stock transaction will result in Nxu acquiring Verde, with the merged entity to be named Verde Bioresins, Corp. Verde Bioresins has developed PolyEarthylene™, a proprietary bioresin that could provide an alternative to petroleum-based plastics. This innovation is expected to disrupt the plastics industry due to its economic feasibility and compatibility with existing manufacturing processes.
In other recent developments, Nxu, Inc. is working to rectify non-compliance issues with NASDAQ's audit committee requirements, following the non-re-election of director Caryn Nightengale. The company is actively seeking to appoint an independent director to fill the vacancy.
Nxu, Inc. has also approved amendments to its stock and officer compensation plans, including an amendment to Nxu's Certificate of Incorporation, allowing the company to adjust the number of authorized shares and to enact reverse stock splits under certain conditions. Lastly, Nxu, Inc. has announced the rollout of a subscription plan for its NxuOne™ EV Charging System, offering unlimited access to a high-powered public charging station in the Phoenix metro area for a monthly fee.
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