Clean Diesel Technologies’ chief financial officer will resign and the company will conduct a reverse stock split as it tries to stay listed on the Nasdaq stock exchange.
Oxnard-based Clean Diesel Technologies, which makes diesel emission control systems for diesel powered vehicles, said in a June 1 filing with the Securities and Exchange Commission that David Shea will resign June 8.
A separation agreement will pay Shea five months’ salary or $72,916.67. Shea will assist with the transition to new CFO Tracy Kern and earn an extra $14,583.33 doing so.
On May 27, Kern left Westlake Village-based Interlink Electronics, where she served as the CFO since last June. She will earn $200,000 in her job at Clean Diesel Technologies and $50,000 in company stock options, which vest on Nov. 30, 2016 and May 31, 2017.
The company will also carry out a one-for-five reverse stock split to prop up its stock and stay listed on the Nasdaq Capital Market. On Feb. 12, the Nasdaq notified Clean Diesel Technologies that its share price fell below the $1 minimum required to stay on the exchange.
The company had until Aug. 10 to get its share price above $1 for 10 consecutive business days before then but, on May 27, the Nasdaq granted Clean Diesel Technologies an extension until Sept. 15 to get its share price above $1.
At the time of the delisting notice on Feb. 12, Clean Diesel shares traded for 76 cents. Clean Diesel stock closed down three cents to 37 cents June 2 and had a market cap of $7.21 million.
• Contact Philip Joens at [email protected].