Key Executives Have Departed, as Firm Has ‘Cratered’
Enova Systems reports that it’s being delisted from the New York Stock Exchange for failing to meet stockholders’ equity requirements and for posting too many consecutive years of losses.
Further, late last month Enova notified NYSE staff that CEO Mike Staran had left the company, as had COO John Mullins, “reinforcing the Staff’s conclusion,” according to an Enova release, “that the Company will be unable to regain compliance by October 15, 2013.”
“Enova basically has cratered,” an industry source told F&F Tuesday.
Former CFO John Micek is named as CEO in Enova’s NYSE de-listing announcement.
Calls to Enova extensions today were not answered.
‘Batteries Remain a Concern’
“Uncontrollable industry conditions are prohibiting Enova from achieving our targets,” former CEO Staran told F&F in an email prior to his departure. “Batteries remain a concern, as major manufacturers have yet to provide reliable batteries at competitive pricing. Timing of production batteries remains a conservative 12 to 15 months from order date…
“OEM programs have slipped due to the OEMs reluctance to source significant orders, due to recent negative media attention and performance/cost concerns.
“Although it is expected that OEMs will use EV/HEV technology to penetrate new markets as well as compliment existing ones,” Staran said in his email, “recent negative media attention regarding batteries has created concern for our primary customers.
“Some of these customers are not reliant on EV/HEV, thus do not have the same sense of urgency that we would prefer.”
Staran has now joined Via Motors as executive VP.
Enova late last year launched the Green for Free program with Freightliner Custom Chassis Corp, allowing commercial fleet operators to purchase battery electric vehicles and hybrid EVs with no additional upfront cost (F&F, November 28). FCCC is believed now to be focusing its efforts on a program for battery trucks with Stockton, Calif.-based Electric Vehicles International, which is building 100 pure battery trucks with UQM Technologies (AMEX:UQM) drivelines for UPS (F&F, August 29, 2011).
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