BlastGard names new CEO, issues warning
BlastGard finds working capital funding
Michael Gordon was named chief executive officer of BlastGard International Inc. following the resignation of Andrew McKinnon.
McKinnon, a turnaround specialist who joined the company in 2007, resigned on Aug. 10 as CEO, but will continue to serve as a board member, BlastGard said in a filing with the Securities and Exchange Commission.
McKinnon had been paid in BlastGard stock since December 2008, in order to reduce the company’s monthly expenses, the filing said. When he resigned, the company issued 187,50 shares of restricted stock as his final payment, the filing said. BlastGard stock closed at 2 cents a share on Aug. 10.
Gordon has been chief financial officer of BlastGard (OTC BB: BLGA), a Clearwater firm that creates, designs, develops, manufactures and markets proprietary blast mitigation materials. Michael Gordon is the brother of James Gordon, who is chairman and president of the company.
BlastGard also issued a warning about its financial condition. The company said its ability to continue as a going concern requires it to raise capital immediately, either by selling stock, borrowing or boosting revenue and cash flow from operations.
BlastGard said in its SEC filing that it would need between $1 million and $1.5 million in additional financing and cash flow from operations to support its operations and to meet debt obligations over the next 15 months of operations. The company said it has not been able to generate significant orders from sales to fund operations. Revenue for the three months ended June 30 was $707, compared to $8,324 in the year-ago period, the filing said.
For the second quarter of 2009, BlastGard reported a net loss of $194,577 or 0 cents per share, compared to a net loss of $387,717 or 1 cent per share reported in the second quarter of 2008.
It would be a real shame if this product line was discontinued... - I don't know why they do not apply for Fed funding... |
