Street Calls of the Week
MONTREAL - Vision Marine Technologies Inc. (NASDAQ:VMAR), whose stock has declined over 97% in the past year according to InvestingPro data, announced Friday the renewal of Alexandre Mongeon’s contract as Chief Executive Officer, according to a company press release.
The new executive employment agreement includes a bonus of 285,000 common shares for completing the Nautical Ventures acquisition and relocating to Florida to oversee expanded operations. The agreement also establishes performance-based incentives, offering Mongeon up to $750,000 in cash bonuses and 500,000 common shares if the company achieves specific market capitalization targets of $15 million, $25 million, and $35 million.
The company’s board has also adopted a Restricted Share Unit (RSU) Plan for employees, officers, directors, and consultants. Under this plan, Mongeon received 500,000 Restricted Share Units that will vest when the market capitalization milestones are met.
Since co-founding Vision Marine in 2013, Mongeon has led the company’s transition from electric boat production to high-voltage propulsion systems development. The company, which holds the world electric boat speed record at 116 mph, recently acquired Nautical Ventures, expanding its retail and service footprint to nine locations across Florida. With a current market capitalization of $4.41 million and a healthy current ratio of 3.93, InvestingPro analysis shows the company maintains more cash than debt on its balance sheet, though revenue has declined 68% over the last twelve months.
The issuance of shares to Mongeon constitutes a "related party transaction" under Multilateral Instrument 61-101 but is exempt from formal valuation and minority shareholder approval requirements as the value does not exceed 25% of the company’s market capitalization. The agreement and share issuance were approved by the company’s compensation committee and remain subject to disinterested shareholder approval. For deeper insights into VMAR’s valuation and 16 additional key investment tips, visit InvestingPro.
In other recent news, Vision Marine Technologies Inc. announced the successful closing of its public offering, raising $7 million through the sale of 3.5 million shares of common stock at $2.00 per share. This offering also includes a 45-day option for underwriters to purchase an additional 525,000 shares or pre-funded warrants to cover over-allotments. In a strategic move, Vision Marine is partnering with Port de plaisance La Ronde to create an electric boating hub in Montreal, slated to launch in 2026. This initiative aims to establish a center for sales, distribution, and training in electric marine propulsion. Additionally, Vision Marine has teamed up with Hydrofin to incorporate hydrofoil systems into its pontoon boats, enhancing efficiency and performance. These developments underscore Vision Marine’s commitment to advancing electric propulsion in the marine industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.