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SunOpta Inc (TSX:SOY). (NASDAQ:STKL), a $892 million market cap company specializing in the wholesale of farm product raw materials and showing impressive growth with a 60% stock return over the past year, announced the immediate termination of Chad Hagen as Chief Customer Officer on December 12, 2024. According to InvestingPro data, the company has demonstrated strong revenue growth of nearly 17% in the last twelve months.
The company, headquartered in Eden Prairie, Minnesota, disclosed the details of Hagen's departure and the accompanying severance agreement in a recent 8-K filing with the Securities and Exchange Commission.
According to the filing, Hagen's departure was followed by a Separation Agreement and Full and Final Release, which entitles him to a severance payment of $175,000, paid in a lump sum. This severance package comes as SunOpta (NASDAQ:STKL) maintains a healthy liquidity position with a current ratio of 1.2, indicating sufficient assets to meet short-term obligations.
Should Hagen elect to continue his healthcare benefits under COBRA, SunOpta will cover the employer portion of medical and dental premiums for up to three months. Additionally, 36,667 unvested Restricted Stock Units will vest as part of the agreement.
The severance package is subject to standard tax deductions and other withholdings, and Hagen is also entitled to compensation for accrued but unused vacation time. The agreement includes a clause that allows Hagen to revoke his acceptance within seven days of signing, in which case he would forfeit the severance benefits.
The company's filing did not specify the reasons for Hagen's termination but outlined that his eligibility for the severance benefits is contingent upon his agreement to a release of claims against the company. For investors seeking deeper insights into SunOpta's corporate governance and financial health, InvestingPro offers comprehensive analysis with 13 additional ProTips and detailed financial metrics in its Pro Research Report, available for over 1,400 US stocks. This suggests that Hagen is required to waive any legal claims he may have against SunOpta related to his employment or termination.
SunOpta's announcement comes amid regular corporate governance activities and is part of the company's compliance with regulatory requirements. The 8-K filing, which includes the full text of the Separation Agreement, was made public on December 18, 2024, and serves as the official record of Hagen's departure and the terms of his exit from the company.
In other recent news, SunOpta Inc . reported a strong third quarter for fiscal 2024, with revenue reaching $176 million, a 16% increase from the previous year. This growth was primarily driven by a 21% surge in volume and a substantial 42% growth in the fruit snacks segment. Adjusted gross margin improved, and the company's focus remains on operational enhancements and customer growth. SunOpta's management expressed optimism about the company's trajectory, citing strong market trends and customer relationships.
SunOpta's net leverage ratio decreased, with a target to reduce it further by year-end. The company also reaffirmed its fiscal 2024 revenue guidance of $710 to $730 million. Significant investments in supply chain efficiencies are expected to boost profitability in the future. Despite facing manufacturing challenges and higher operational costs due to increased demand, the company reported a profit from continuing operations of $5.5 million.
These are recent developments for SunOpta. Looking ahead, the company is investing in supply chain improvements aiming to enhance margins and shareholder value. Management is confident in operational improvements supporting volume growth into 2026 without significant capital expenditures. Further details on the company's outlook for 2025 will be shared in the next quarter's earnings call.
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