GreenMan Technologies Inc. has named Lyle Jensen president and CEO, replacing Robert Davis, who resigned to pursue other interests.
Mr. Jensen, formerly chair of the company's audit committee, will continue as a member of the board of directors. Nicholas DeBenedictis, an independent director, will serve as Lynnfield-based GreenMan's interim audit committee chair.
Mr. Jensen's appointment comes on the heels of a $15.2 million net loss on sales of $22.1 million the company reported for the fiscal year ended Sept. 30, 2005. In fiscal year 2004, GreenMan posted a loss of $2.6 million on sales of $19.1 million.
For the fiscal first quarter ended Dec. 31-GreenMan's most recently reported quarter-the company posted another net loss of $1.4 million compared with a net loss of $1.8 million a year prior.
GreenMan has hemorrhaged money despite increasing sales, a trend the company said it hopes it has corrected by divesting its money-losing Georgia and Tennessee operations.
As part of its efforts to reduce corporate overhead, GreenMan said it will relocate its headquarters to the Midwest over the next several months to wherever Mr. Jensen decides upon. The company has facilities in Savage, Minn., and Des Moines, Iowa, and also an operation in Azusa, Calif.
After the April 17 announcement of his appointment, Mr. Jensen agreed to purchase 500,000 shares of the company's common stock valued at $140,000, which GreenMan said was in conjunction with his taking on his new position.
Additionally, Mr. DeBenedictis will convert approximately $76,000 of short-term debt and accrued interest into approximately 273,000 shares of unregistered GreenMan common stock. Issuance of the shares is subject to approval by the American Stock Exchange (ASE) of GreenMan's application for listing of these shares.
However, in late April the ASE threatened to delist GreenMan for failing to file its quarterly financial reports with the Securities and Exchange Commission in a timely fashion and failing to maintain stockholders' equity of at least $4 million in the face of sustained net losses for three of the past four years. The company has appealed the delisting proceedings.