CleanTech Lithium suspends CEO on shares-backed loan

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CleanTech Lithium suspends CEO on shares-backed loan
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The company said it noted that between September 8, 2023 and February 6, 2024, Boitano transferred his entire holding of 9,400,002 ordinary shares to a custodian account nominated by the lender.

When questioned, Boitano was not able to ascertain the extent to which these shares might have been transferred to a further nominee account in the name of the lender or sold by the lender, CleanTech said.Shares in the company took a big hit in early trading in London, falling to 11p. The stock recovered later in the day, closing 3.46% higher at 11.65p. That leaves the company with a market capitalization of £16.91 million .

“The board of CleanTech Lithium would like to make it clear that Mr Boitano is cooperating with the investigation,” the company said. To ensure there is no impact to the ongoing work program at the Laguna Verde project, Steve Kesler, currently executive chairman, has assumed the CEO’s responsibilities, it said.

Personal loans secured by executives’ own company shares can be contentious, as they may result in share sales or create a long-term overhang on share prices.The amount received represents a rebate of up to 50% of eligible exploration costs at its flagship Root Lake project in Canada.A stuttering recovery in lithium prices is providing a fresh reminder of why the dramatic rally of recent years was followed by an even more breathtaking collapse.

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