(Sharecast News) - Scirocco Energy announced the immediate resignation of chief executive officer Tom Reynolds from his position as a director of the board on Friday.
The AIM-traded firm said Reynolds would, however, continue to serve as CEO until 12 July, or an earlier date if agreed by both parties.
It said the decision came in the wake of the general meeting on 10 January, where shareholders approved the divestment of Scirocco's sole significant investment in EAG.
With that divestment, the company said it expected a reduced need for active management resources and viewed Reynolds' departure as a measure to conserve cash.
While Reynolds was the sole executive of Scirocco, he would remain committed to supporting the company during the notice period, the board explained.
The firm said it was actively exploring various strategic options, which could include the distribution of available cash, further investments in line with its investing policy, or the deployment of proceeds for a potential reverse takeover.
"Tom's decision to resign from his role as a director aligns with Scirocco's efforts to husband the cash it has received, or expects to shortly receive, from the recent divestments," said non-executive chairman Alastair Ferguson.
"Tom is a high quality CEO who has steered Scirocco through material changes, both within the company and in terms of the industry backdrop, and the timing of his signalled departure is appropriate given the current status of Scirocco.
"On behalf of the board, I'd like to thank Tom for his tireless efforts since taking on the role and we appreciate his commitment to ensure an orderly handover of responsibilities while the company assesses its next move."
At 1319 GMT, shares in Scirocco Energy were down 6.92% at 0.3p.
Reporting by Josh White for Sharecast.com.
