Professional Diversity Network appoints Xun Wu as CEO and expands board

Professional Diversity Network, Inc. (NASDAQ:IPDN) announced changes to its executive leadership and board composition, according to a press release statement based on a filing with the Securities and Exchange Commission. The company, currently valued at $7 million, has faced challenging market conditions with its stock down 41% year-to-date, though recent weeks have shown promising momentum with a 15% gain.According to InvestingPro analysis, the company appears undervalued compared to its Fair Value, despite maintaining impressive gross profit margins of 58%.

On Friday, the board accepted the resignation of Adam He as Chief Executive Officer. The company stated that Mr. He’s resignation was not due to any disagreement with the company’s operations, policies, or practices. The board expressed its appreciation for his service.

Effective Tuesday, the board appointed Xun Wu as the new Chief Executive Officer. Mr. Wu, age 65, previously served as Chief Editor at Wenzhou News Media Center since 2011 and has a background in editorial management. He holds a bachelor’s degree in Chinese Language and Literature from Wenzhou Normal University and has received professional training in electronic publishing systems from Peking University. The company reported no arrangements or family relationships connected to his appointment and stated that there have been no transactions involving Mr. Wu that require disclosure.

Mr. Wu’s employment agreement is for a term of 12 months starting Tuesday, with compensation consisting of shares of common stock valued at $100,000 per year. The agreement does not specify any additional annual bonus or equity awards. In the event of termination without cause, Mr. Wu will receive earned but unpaid base salary. If termination occurs due to a change of control, he will be entitled to a lump sum cash payment equal to 12 months of base salary, a pro-rated target annual bonus for the prior year, and immediate vesting of any unvested equity awards.

The board also increased its size from five to seven directors on Friday and appointed Haixia Lu as an independent director, effective immediately. Ms. Lu, age 32, is currently a Project Management Specialist and Head of the Health Education Unit at Novartis (SIX:NOVN) Pharmaceuticals. She holds degrees in public health administration and accounting from Wuhan University of Science and Technology. Her committee assignments have not yet been determined.

Ms. Lu’s compensation includes an annual cash retainer of $5,000 and an annual equity award of $25,000 in restricted stock units, with additional compensation possible for committee service.

All information is based on a press release statement and the company’s filing with the SEC.

In other recent news, Professional Diversity Network, Inc. has been active with several significant developments. The company issued $400,000 in convertible notes to two non-affiliated accredited investors. These notes can be converted into restricted shares of the company’s common stock under specific conditions. Additionally, Professional Diversity Network entered into a warrant exchange agreement that involved the cancellation of 500,000 warrants in exchange for 333,333 shares of common stock.

Changes in leadership were also announced, with Megan Bozzuto resigning as interim CFO, though she will continue as president of the International Association of Women, a subsidiary of the company. Lisa Fan has been appointed as the new interim CFO, with an annual salary set to increase after the interim period and stock awards valued at $20,000 annually. Furthermore, the company reshuffled its Board of Directors, with the resignations of Michael D. Belsky and Chris Renn, and the appointments of Eloisa Sultan and Long Yi. Sultan brings experience from the medical field, while Yi offers financial expertise from his previous executive roles.

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