CleanTech Lithium suspends CEO on shares-backed loan
Chile-focused explorer and developer CleanTech Lithium (LON: CTL) has suspended its chief executive officer, Aldo Boitano, pending an investigation into a loan he entered into with an unnamed lender.
The company said it noted that between September 8, 2023 and February 6, 2024, Boitano transferred his entire holding of 9,400,002 ordinary shares to a custodian account nominated by the lender.
When questioned, Boitano was not able to ascertain the extent to which these shares might have been transferred to a further nominee account in the name of the lender or sold by the lender, CleanTech said.
Shares in the company took a big hit in early trading in London, falling to 11p. The stock recovered later in the day, closing 3.46% higher at 11.65p. That leaves the company with a market capitalization of £16.91 million ($21.2m).
“The board of CleanTech Lithium would like to make it clear that Mr Boitano is cooperating with the investigation,” the company said.
To ensure there is no impact to the ongoing work program at the Laguna Verde project, Steve Kesler, currently executive chairman, has assumed the CEO’s responsibilities, it said.
Personal loans secured by executives’ own company shares can be contentious, as they may result in share sales or create a long-term overhang on share prices.
CleanTech, which recently opened a direct lithium extraction pilot plant in northern Chile, told stakeholders that it will provide updates on the situation as the investigation progresses.