New Zealand King Salmon chief executive Grant Rosewarne has resigned after 13 years in the role.
Chair John Ryder said on Tuesday that Rosewarne’s resignation would take effect immediately.
As part of his exit, NZ King Salmon granted Rosewarne a put option – a right to sell securities at a set price within a certain timeframe – connected to his long-term incentive to let him repay a loan from the company taken on to buy shares through a family trust.
Rosewarne forfeited almost 174,000 shares in September and June due to the NZ King Salmon share price falling short of the hurdle price to meet his long-term incentives.
The shares closed at 23.5 cents on Monday, having slumped by more than two-thirds over the past 12 months in what’s been a torrid few years for the company.
NZ King Salmon general manager of sales Graeme Tregidga would be acting CEO during an international search for a replacement.
The company sank deeper into the red in the six months that ended July 31, reporting a loss of $24.6 million, compared to $5.6m a year earlier, as warmer waters increased fish mortality to the tune of $22.3m.
It’s since begun rebuilding its biomass, which restricted harvest and sales.
NZ King Salmon has also spent time working on its Blue Endeavour project, which would involve rearing fish in colder waters 7km off the South Island coast in Cook Strait.
Ryder said Rosewarne led a significant effort to obtain new water space and the company expected to learn of the outcome of its Blue Endeavour application at the end of November.
He said Rosewarne made a major contribution to the company, including leading it through its 2016 initial public offering when it sold $77.5m of shares to the public at $1.12 each.
“He has also guided the company through a number of recent challenges, including the covid-19 pandemic,” Ryder said.
Following this year’s rights issue at 15 cents a share and the changes to its farming model, Rosewarne left New Zealand King Salmon well positioned for the future, Ryder said.
