Charge Enterprises CEO Resigns Amid Shareholder Activist Pressure
August 29, 2023 by Joe Panettieri
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."
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