The Speedcast International Ltd (ASX: SDA) share price jumped almost 17% on Friday.
Speedcast International is a satellite services company with operations stretching from Brisbane around to Perth. Ships, mining companies, Government groups and other parties can use their services for communication.
Why The Speedcast Share Price Rose 17%
The Speedcast share price has been very volatile since the start of July, falling from $3.48 to $0.76 and now it’s back up to $1.24.
Today the company announced that Peter Shaper and Joe Spytek have agreed to join the board as independent non-executive directors, effective on Friday.
Speedcast said that Mr Shaper has extensive business and Board experience, particularly in the satellite telecommunications sector having previously been Chairman and CEO of CapRock Communications and Chair of ITC Global. He won the 2009 Satellite Executive of the Year award.
Joe Spytek has over 25 years of experience in leadership and international business. Most recently he was the founder and CEO of ITC Global. He has previously built several successful international telecommunications companies.
Clearly Speedcast is hoping their experience in the industry and past experience building companies can help rebuild confidence in Speedcast.
Caroline van Scheltinga has informed the company of her retirement from the Board effective immediately.
Speedcast Chair Stephe Wilks said: “Their substantial satellite telecommunications industry experience, and her successful history building businesses, further strengthens the Board.
“Critically, the appointments provide additional skills to support our management team implement the Company’s strategic plan. The fact we were able to secure two Directors of this calibre so quickly is a testament to the quality of our people, and the global platform they have built – presenting our new Directors with a compelling opportunity to contribute.”
If shareholders approve, each new director will be entitled to 600,000 options with an exercise price of $1.30, which is slightly above the Friday closing price, which expire three years from the date of the grant and exercisable if the closing price of Speedcast shares on the ASX trades at or above $3 for ten successive trading days.
Chair Wilks gets the same terms, but for 900,000 options.
It’s good to see that Speedcast seems to be doing some of the right steps to get back on track, but there’s a long way to go to a $3 share price. It could be one to watch. But the growth shares in the free report below could be even better ideas.
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