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From Marketwire:
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ZENN Motor Company Announces Change in Management
TORONTO, ONTARIO--(Marketwire - Feb. 14, 2011) - ZENN Motor Company Inc. ("ZMC" or the "Company") (TSX VENTURE:ZNN) today announced that effective today, Ian Clifford will resign from his position as Chief Executive Officer (CEO) and assume the role of Founder and Vice-Chair of the Board of Directors of ZMC. Mr. Clifford, who founded the Company in 2001, will continue to play a key role in defining the Company's future vision and strategic plans.

"The purpose of this transition is twofold", stated Clifford. "Firstly, this makes sense in the context of our focus to preserve cash and I am pleased that my move can contribute towards this objective. Secondly, and most importantly, it allows me to remain dedicated to positively maintaining our key relationship with our technology partner, EEStor, Inc. I take great pride in the company that we have built and look forward to the opportunity to focus on strategic initiatives", Clifford continued.

Rick McGraw, Chair of the Board of the Company stated, "We thank Ian for his many years of leadership as Founder and CEO of ZENN Motor Company. I applaud Ian for his vision of zero emission transportation and know that he will remain extremely committed to supporting our pursuit of that vision by remaining fully engaged in our relationship with our key technology partner, EEStor, Inc. and helping us to set the future direction of the organization."

In what is a natural evolution for ZMC, Brian Cott will become President and CEO of the Company effective today. Mr. Cott joined ZMC in 2006 as President and Chief Operating Officer, shortly after ZMC became a publicly listed company.

"I am excited about our current plans and activities and firmly believe that our ZENNergy(TM) technologies and solutions will have a major impact on the electrification of the automotive industry", Mr. Cott said. "We have assembled a strong core team of executives who are working hard to ensure that ZMC takes full advantage of the significant opportunities emerging in our industry."

Last edited Mon, 14 Feb 2011, 6:42pm by wcushman

My guess is that this move is in preparation for a significant reduction in force as they mention preserving cash.

It's easier to lay people off if you've let yourself go first?

Zenn really didn't need a CEO and COO for just 16 (or less) people. Ian has a lot of stock and options and this allows him to continue vesting his options and remain involved, but he no longer sits at his desk with nothing much to do.

If the company was really trying to conserve their cash, they'd also get rid of the CFO, VP of engineering, the marketing VP, and IR. For a group of about 8 to 10 engineers, they really just need 1 senior manager. They can farm out the IR and accounting.

Sounds like the board was disapointed in Ian's performance as he could have pulled a Steve Jobs and taken $1 a year in salary. He can afford it.

IC is OUT!

LoL

Mark

ONeil wrote:

It's easier to lay people off if you've let yourself go first?

To me it sounds like a bloodless palace coup. The king ( Ian ) is given a secondary job ( Vice Chairman of the board of directors ) rather than executed. Perhaps he went willingly realizing he was out of his depth in the world of cutthroat business. Since Ian made the initial deal with DW, perhaps he is the only person DW confides in at Zenn. In that case, they have to keep him involved. According to the news story it will save cash for Zenn.

I am also beginning to wonder if the options price has been established at $1.30 as part of the shareholder's rights "poison pill" defense against a hostile takeover. If a takeover is in the works, all shareholders will have 90 days to buy all the shares they want at $1.30 before a takeover bid can be accepted. This strategy grossly inflates the number of shares that must be purchased in order to gains control of Zenn and drives the price so high, nobody could afford to buy it.

Only hindsight will reveal the truth about this one so stay tuned kiddies. The plot thickens.

Brian Cott is a punk, TV will say so.

"Secondly, and most importantly, it allows me to remain dedicated to positively maintaining our key relationship with our technology partner, EEStor, Inc. "

IC is trying to say something here; but I'm not sure what it is. "Most importantly" if it's that important, shouldn't he have made clear his meaning? What was keeping him before resigning from "maintaining our key relationship with...EEStor?" Is he now going get a better phone, give up ski vacations, or even move to Cedar Park to keep a closer eye on things? Maybe DW still holds IC accountable for the leaked interview fiasco; and IC feels removing himself from the top seat will smooth things over? More speculation, speculation, speculation.

Come on, you know that as I do, IC was too afraid of pitchforks at the AGM and decided to get out of responsibility.

This turn of events reminded me of what TV said in Chat (Nov19/10)
"....If you want to use ZMC as a proxy for what to expect from EEstor, watch what Brian Cott and Richard McGraw do, not Ian. So long as they are both at ZMC the future holds promise. It is only after an EEstor announcement that anyone should start paying attention to Ian again."

Let's all watch carefully now, as it appears things may become quite interesting this year.

AMN wrote:

This turn of events reminded me of what TV said in Chat (Nov19/10)
"....If you want to use ZMC as a proxy for what to expect from EEstor, watch what Brian Cott and Richard McGraw do, not Ian. So long as they are both at ZMC the future holds promise. It is only after an EEstor announcement that anyone should start paying attention to Ian again."

Let's all watch carefully now, as it appears things may become quite interesting this year.

This news came out after the markets closed today. How will Zenn stock do tomorrow?

wcushman wrote:

This news came out after the markets closed today. How will Zenn stock do tomorrow?

wcushman wrote:

This news came out after the markets closed today. How will Zenn stock do tomorrow?

My SWAG is the stock price will take a hit. Ian's reference to conserving cash will be seen as an admission the EEStor reveal date is not imminent.

Kind of funny considering what happened last time Ian tried to hint on EEStor's product schedule.

This is ZMC taking some of my advice almost verbatim.

This is good as it is one of the smarter moves ZMC could make. Cott was already running ZMC, now he'll have to put his name on the financials.

Cott wouldn't mind the new title. But there is still no sign he's doing anything other than a piss poor job running ZMC.

I've been waiting on the first quarter financials to update the decision/action time for ZMC, but last time I checked ZMC had a decision/action time of around March.

"We have assembled a strong core team of executives who are ..." twiddling their thumbs as fast as they possibly can!

I'm just shocked we're in 2011 and ZENN still has cash left to preserve!

tvillars wrote:

wcushman wrote:

This news came out after the markets closed today. How will Zenn stock do tomorrow?

My SWAG is the stock price will take a hit.

Y_Po wrote:

tvillars wrote:

wcushman wrote:

This news came out after the markets closed today. How will Zenn stock do tomorrow?

My SWAG is the stock price will take a hit.

How is your bet with ee-tom being rated?

Not sure. We'll see after the AGM.

AMN wrote:

This turn of events reminded me of what TV said in Chat (Nov19/10)
"....If you want to use ZMC as a proxy for what to expect from EEstor, watch what Brian Cott and Richard McGraw do, not Ian. So long as they are both at ZMC the future holds promise. It is only after an EEstor announcement that anyone should start paying attention to Ian again."

Let's all watch carefully now, as it appears things may become quite interesting this year.

Good post AMN. Thanks for remembering that.

tvillars wrote:

wcushman wrote:

This news came out after the markets closed today. How will Zenn stock do tomorrow?

My SWAG is the stock price will take a hit. Ian's reference to conserving cash will be seen as an admission the EEStor reveal date is not imminent.

Kind of funny considering what happened last time Ian tried to hint on EEStor's product schedule.

Yes the price will go down most likely. Because the superficial, shallow interpretation would be that a reveal is along way off. A deeper look says otherwise. see chat for details.

tvillars wrote:

Y_Po wrote:

tvillars wrote:

wcushman wrote:

This news came out after the markets closed today. How will Zenn stock do tomorrow?

My SWAG is the stock price will take a hit.

How is your bet with ee-tom being rated?

Not sure. We'll see after the AGM.

Fibb wrote:

tvillars wrote:

wcushman wrote:

This news came out after the markets closed today. How will Zenn stock do tomorrow?

My SWAG is the stock price will take a hit. Ian's reference to conserving cash will be seen as an admission the EEStor reveal date is not imminent.

Kind of funny considering what happened last time Ian tried to hint on EEStor's product schedule.

Yes the price will go down most likely. Because the superficial, shallow interpretation would be that a reveal is along way off. A deeper look says otherwise. see chat for details.

Companies typically announce "bad" news on a Friday so it is rather odd to make this press release on a Monday.

Hmmm- this is the Brian Cott in the lawsuit? The Brian Cott that is posibly the center of the sexual harassment scandal?

And he has replaced Ian Clifford, a successful businessman and positive face of the company? There may be any of several logical and excellent explanations- but without further info, I get this nagging sense that something is rotten in the state of Denmark...

Also a thought- does keeping Ian on the Board hold him to the NDA?

Y_Po wrote:

tvillars wrote:

Y_Po wrote:

tvillars wrote:

wcushman wrote:

This news came out after the markets closed today. How will Zenn stock do tomorrow?

My SWAG is the stock price will take a hit.

How is your bet with ee-tom being rated?

Not sure. We'll see after the AGM.

yeah, IC allowed to be kicked out just before EESU delivery to Zenn.

This is not Clifford getting kicked out. This is Cott getting put in the hotseat where he belongs, given he's been making the decisions. Didn't really have responsibility before.

tvillars wrote:

Fibb wrote:

tvillars wrote:

wcushman wrote:

This news came out after the markets closed today. How will Zenn stock do tomorrow?

My SWAG is the stock price will take a hit. Ian's reference to conserving cash will be seen as an admission the EEStor reveal date is not imminent.

Kind of funny considering what happened last time Ian tried to hint on EEStor's product schedule.

Yes the price will go down most likely. Because the superficial, shallow interpretation would be that a reveal is along way off. A deeper look says otherwise. see chat for details.

Companies typically announce "bad" news on a Friday so it is rather odd to make this press release on a Monday.

tvillars wrote:

Companies typically announce "bad" news on a Friday so it is rather odd to make this press release on a Monday.

I suppose this could be considered Good News given the conservation of cash angle. Not to mention the whole "Ian is an idiot" angle.

First the CFO, now the CEO. It's like philosophy question I heard once about replacing all the planks on a wooden ship, once they are all replaced, is it still the same boat?