The news release was very confusing.
I do not know much about the history of this company. Have known about this company just for a few days. A few days back I read about the management team but do remember their names.
The new chairman is now also the new CEO. The CEO has been demoted & is now the CFO. The CTO is in the same position. From the news release I thought that CFO has become the CTO but I recall the CFO was an investment banker. Looks like the CTO is in his same position but the CFO is gone.
If they have sacked the CFO then it is the right decision because he was the main person responsible for accounting & account receivables.
The old CEO & the new CFO & is a charter accountant. He is very qualified for the job. But being the CEO he is also responsible for AR mess. The board is also reviewing the management this could be a temporary job to clear up the mess & they may still sack him. In order to get to the bottom of the situation you need some existing staff for investigation.
The securities commission should be calling on the company & asking about all the details of account receivables & the policy regarding booking revenues. If the securities commission is not satisfied with the practise then they can suspend trading of the stock.
Has anyone seen the lawsuit document ? What is the allegation about revenues ?
According to the Bio the news CEO is a very experienced person. He should be able to deal with the issues. The board is very small. They should have more than four people on it. There is one lawyer on it too. He should have know if the company can cancelled an announced dividend. It is rare that a company cancels a declared dividend. Do not know if they can legally do that. I have feeling that they are reviewing it & obtaining legal opinion about it. There can be another law suit for this cancelled dividend.
The stock is intra day trade able as a declining stock. For the last two days it has created a new low & it has bounced off those lows. The risk in intra day trading is the risk of securities commission suspending the stock from trading.