On Monday, Canaccord Genuity maintained its Buy rating and $21.00 price target for Cibus (NASDAQ:CBUS), following the announcement that the company's CFO, Wade King, will be taking an indefinite leave of absence for family reasons.
King will step down from his role at the end of September after three years with the company. Canaccord Genuity views this development as immaterial to the stock, considering the leave is temporary and unrelated to Cibus' operations.
Upon King's departure, Senior Vice President of Finance, Carlo Broos, will assume the position of interim CFO. Broos, who has been with Cibus since 2011, has contributed significantly to the development of the company's finance organization and played a pivotal role in the company's IPO and the integration of Calyxt (NASDAQ:CLXT), an acquisition target. His previous roles within Cibus include Finance Director of the Canadian seed business, Head of Financial Planning & Analysis, and VP of Business Development.
Before his tenure at Cibus, Broos accumulated extensive experience in agriculture, finance, and accounting operations. His career includes a six-year stint at Syngenta, where he served as the Regional Head of Finance Services and the CFO of Benelux. Broos also spent ten years in accounting, including seven years at Deloitte and a role as a controller for the Advanta Group.
Broos holds a Master of Science in Business from Radboud University in the Netherlands and has completed a post-master accounting course at Tilburg University in the Netherlands. He is also a Registered Accountant. The company anticipates that upon King's return, he will take on a new position as Chief Risk Officer.
In other recent news, Cibus has reported significant advancements in its technology and commercial operations. The company disclosed its second-quarter financial results, indicating an increase in R&D expenses and a higher net loss compared to the previous year, while maintaining a cash balance of $30 million. Cibus is progressing with its non-GMO herbicide-tolerant traits in rice, targeting a 2027 launch, and has achieved substantial progress in canola traits for disease resistance and nutrient use efficiency.
In terms of executive changes, Cibus announced that its CFO, Wade King, will take an indefinite leave of absence for family reasons. In his absence, Carlo Broos, the Senior Vice President of Finance, will assume the interim CFO role. Notably, Broos has a wealth of experience in the finance and accounting sectors, including significant contributions to Cibus's finance organization and the integration of its acquisition target, Calyxt.
Despite the financial challenges, Cibus is making strategic moves to enter new markets and form partnerships, reflecting a strong commitment to its long-term vision. The company's products recently gained approval in Canada, preparing Cibus to access substantial markets for canola, wheat, and soybeans.
InvestingPro Insights
As Cibus (NASDAQ:CBUS) navigates the temporary leave of its CFO, investors may find the following InvestingPro Insights helpful in assessing the company's current financial health. Cibus has a market cap of $171.2 million and is currently trading at a previous close price of $7.56. Despite experiencing a significant revenue growth of 816.72% over the last twelve months as of Q2 2024, the company's operating income margin was deeply negative at -2503.38%, reflecting substantial operating losses.
InvestingPro Tips indicate that Cibus is quickly burning through cash and is not expected to be profitable this year. Additionally, the stock has been volatile, with price total returns dropping by -23.25% over the last month and -51.35% over the last three months. For investors seeking more comprehensive analysis, there are 9 additional InvestingPro Tips available that can offer deeper insights into Cibus' performance and outlook.
While the internal management changes at Cibus may not directly impact the company's operations, these financial metrics and InvestingPro Tips can provide investors with a broader context for understanding the company's current market position and future challenges.
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