Charge Enterprises CEO Resigns Amid Shareholder Activist Pressure

Charge Enterprises founder and CEO Andrew Fox (pictured, above) has resigned his chairman and chief executive posts roughly one week after activist firm Arena Investors demanded changes to address the EV (electric vehicle) charging infrastructure company's sagging stock price.

Craig Denson, Charge's current COO and compliance officer, has been named interim CEO. Amy Hanson, chair of the audit committee and lead independent director, will assume the chairperson responsibilities. Fox remains a director on the board, and will serve as a strategic advisor to the board, according to the company.

Fox's resignation surfaced roughly one week after Arena Investors sent a letter to Charge Enterprises, urging the board to "take clear steps towards improving Charge's current corporate management and operations, with the goal of remedying Charge's dramatic underperformance, including an approximately 78% decline in Charge's stock price in the past year."

Without mentioning Arena Investors by name, the Charge Enterprises board has vowed to implement three changes:

1. Assess and develop a comprehensive strategic plan for the business;
2. institute a robust framework for external communication that fosters transparency; and
3. deploy initiatives to successfully integrate the recent Greenspeed Energy Solutions acquisition.

Greenspeed is a consulting firm and integrator focused on EV charging infrastructure, efficient commercial lighting, solar energy and battery storage. The purchase price was roughly $15 million to $22 million based on various earn-out targets.

Charge Enterprises: EV Charging Infrastructure Business Focus, History

Charge Enterprises, based in New York, provides end-to-end project management services in the electrical, broadband and EV charging infrastructure markets. The company operates in two market segments:

• Infrastructure, which includes EV charging, broadband and wireless, and electrical contracting services; and
• Telecommunications, which provides connection of voice calls, Short Message Services (SMS) and data to global carriers.

Charge Enterprises' revenue was $147.6 million million in Q2 of 2023, down 18% from $181.0 million in Q2 of 2022. The company blamed the revenue drop on weakness in its telecommunications business. Meanwhile, net loss was $8.8 million in Q2 of 2023, which was smaller than a $17.2 million net loss in Q2 of 2022.

EV Charging Infrastructure Market: Tesla Momentum, M&A Deals

The EV charging infrastructure market is growing but also consolidating. Among the major developments to watch: Tesla's North America Charging Standard (NACS) continues to gain partner momentum, which means the Tesla Supercharger network could emerge as a de-facto standard for electric vehicle charging systems.

Meanwhile, M&A activity and CEO transitions in the EV charging market occur regularly. For instance:

• EVgo, which develops a fast-charging network for EVs, named Badar Khan to succeed Cathy Zoi as CEO. The transition will be effective in November 2023.
• Siemens acquired EV charging station technology in May 2023, and eBus and eTruck charging technology in August 2023.

United States EV Charging Station Network Priorities

Meanwhile, President Biden wants the United States to build 500,000 EV chargers on a Made-in-America charging network by 2030.

The Bid Administration's strategy calls for the federal government to:

• Publish minimum standards for federally funded EV infrastructure;
• finalize the Build America, Buy America implementation plan for EV charging equipment; and
• empower cities, towns, Tribes, and states to apply for the first round of $2.5 billion in competitive grants to build EV charging stations in communities across the country.

We'll be watching to see if or how Arena Investors reacts to the Charge Enterprises CEO change.