TD NotesFirst positive in over a year...this adds to a change in overall sentiment
Xebec Announces CEO Succession
Aaron MacNeil, CA
Aly Hemraj, CPA, CA (Associate)
Event
Jim Vounassis will succeed Kurt Sorschak as President and CEO effective May 12,
2022.
Impact: POSITIVE
Details: Kurt Sorschak announced that he will retire as Chairman, President and
CEO effective May 12, 2022, but will remain at Xebec as member of the Board of
Directors. Concurrently, Jim Vounassis will be appointed President and CEO and
Mike Munro will assume the COO position.
TD View: We believe that the RNG industry has moved to an early commercialization
stage. In this context, we view the change in management team from founder/
visionary to more of an operational execution skill set as positive. We also view the
retention of Kurt Sorschak at the board level as positive, where we believe that he
can positively contribute to the strategic direction of the company. While we recently
upgraded Xebec to SPECULATIVE BUY (Hold previously) with an unchanged $3.00
target price in an entirely valuation-based call (full report), we continue to view Xebec
as a 'show me' story. In the report, we also said that it was too early to say with
confidence that Xebec will be able to deliver profitable growth, but it is clear from
this management succession update that this is a priority of the board and the
reconfigured management team.