Australia-based bike retailer BikeExchange has suspended its shares from trading and confirmed the resignation of Mark Watkin as its global CEO. The latest moves by the company follow legal action, taken against BikeExchange by US-based Tribike Transport (TBT).
The securities of BikeExchange Limited (BEX) have been placed in a trading halt on the Australian Securities Exchange (ASX) at the request of the company. According to releases via the ASX, the suspension of trading is pending the release of an announcement by the company… ‘regarding a material capital raising.’
BikeExchange has received a complaint, filed in the United States General Court of Justice (North Carolina – Superior Court Division) against its bicycle shipping subsidiary Kitzuma.
‘The complaint has been filed on behalf of Tribike Transport and alleges the use of the plaintiff’s confidential and proprietary information by certain founders of the Kitzuma business in the operation of Kitzuma Corp.
‘The plaintiff is seeking unspecified monetary damages and the prevention of alleged further infringement by the company through a preliminary and permanent injunction.’
A release from BikeExchange stated that the company… ‘believes the allegations are without merit and [it] will vigorously defend against the complaint. BikeExchange has engaged US counsel and is seeking advice on the defence of the claims.’
Mark Watkin has resigned as CEO of BikeExchange, effective immediately. He will remain with the company in the short term to ensure a smooth handover of his responsibilities.
Mark Watkin said “As an investor and shareholder in BikeExchange, I remain a strong supporter of the company, its people and strategy. I’d like to thank all the team for their work over the last five years. I believe the future is very bright for BikeExchange, as it delivers on its mission of making it easy to buy and sell all things bike.”
The process to appoint a permanent CEO will commence immediately. In the meantime Sam Salter, a Co-Founder of BikeExchange and current Board member, will be acting CEO.
Taylor Essick, Co-Founder and CEO of Kitzuma will extend his role across the North American region to the combined BEX and Kitzuma businesses. He will have particular focus on industry, sales and strategy.
www.bikeexchange.com.au
www.asx.com.au
