Precia has published two press releases over the past few days confirming announcements previously made.
As approved during the last AGM, a 10:1 stock split will take place on July 9. We understand the purpose of this move is to improve the shares’ liquidity, which is quite tight today. This could also attract new investors and increase the company’s valuation further. Should the shares reach a much higher price / multiple, we believe Precia might use its treasury shares in connection with some upcoming M&A transactions or to incentivize the newly-acquired companies’ managers.
The appointment of three new members to the management board (the current CFO, export manager and technical director) as COOs was also confirmed. As explained in our previous article, we believe the company is most likely executing on its succession plan and grooming candidates to replace, at some point, its CEO. We would expect the current CEO to remain in his role for a few more years. We look forward to seeing this transition unfolding.