Marrone Bio Innovations provides corporate update - Final candidate identified from CEO search efforts
Apr. 20, 2020
In December 2019, Marrone Bio’s Board of Directors announced that the Company’s founder, Dr. Pamela Marrone, would retire from her position as chief executive officer. At that time, the Board of Directors initiated a search process for a new CEO, and subsequently have identified a final candidate for consideration.
“As a result of our ongoing search efforts to replace Marrone Bio’s retiring Founder, Dr. Pam Marrone as Chief Executive Officer, the Board of Directors has identified a final candidate and is moving discussions to an advanced stage,” said Bob Woods, Chairman of Marrone Bio Innovations. “We look forward to providing updates to our shareholders late in the second quarter of 2020.”
Kevin Hammill, Chief Commercial Officer, added: “From an operational perspective, sales of Marrone Bio products into the specialty crop market year-to-date have been positive, particularly given that February was one of the driest months on record in the key California market. This continued growth builds on our 2019 performance, which included an 80% increase in the number of almond acres treated with Regalia fungicide.
“From a macro perspective, the U.S. Department of Agriculture’s prospective plantings report predicts that U.S. corn and soybean acres will rebound significantly over 2019 plantings. Marrone Bio’s products to service the 2020 planting season are in-place, either in the distribution supply chain or on farm.”
Marrone Bio recently secured a $1.7 million loan under the Paycheck Protection Program (PPP) contained within the Coronavirus Aid, Relief and Economic Security (CARES) Act that was signed into law on March 27, 2020. The loan, evidenced by a promissory note from FiveStar Bank as lender, has a term of two years, is unsecured, and is guaranteed by the Small Business Administration (SBA). The loan bears interest at a fixed rate of one percent per annum with the first six months of interest and principal deferred. Some or all of the loan may be forgiven if at least 75 percent of the loan proceeds are used by Marrone Bio to cover payroll costs, including benefits and if the Company maintains its employment and compensation within certain parameters during the eight-week period following the loan origination date and complies with other relevant conditions. Marrone Bio expects to meet the requirements for full Loan forgiveness. Any forgiven amount will not be included in taxable income.
Jim Boyd, Chief Financial Officer, added: “As recently announced, we were fortunately able to obtain new non-dilutive financing in the form of a $1.7 million loan as part of the Paycheck Protection Program, which may be forgivable if at least 75% of the proceeds are used to cover payroll costs, as we fully anticipate.”
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