Founder and managing director of Perth-based online property portal rent.com.au Mark Woschnak has announced his immediate resignation from the business.
Founder and managing director of Perth-based online property portal rent.com.au, Mark Woschnak, has announced his immediate resignation from the business.
Mr Woschnak has led the business since it was established in Scarborough in 2007 and oversaw its reverse takeover of Select Exploration and subsequent backdoor listing on the ASX in June last year.
He will resign from his duties as of today, with former iiNet chief business officer Greg Bader, who has been providing strategic consulting services to Rent, to fill the shoes as chief executive on an interim basis while the Rent board searches for a successor.
The company has been burning through its cash at a considerable rate as it has rapidly built market presence.
It spent nearly $1.8 million on operations in the March quarter but brought in just $223,000 in customer revenue, leaving a net outflow of $1.56 million.
In the nine months to March, Rent generated $434,000 in revenue, with a net operating outflow of just over $4 million.
Rent also completed a $5.4 million capital raising in April at 15 cents a share, which represented an 18 per cent discount to the company’s 10-day volume weighted average price at the time.
Mr Woschnak said he remained a significant shareholder.
“The company is now approaching a dynamic new phase of commercialisation and it is timely to introduce new skills and leadership to take the business through the next stage of growth,” Mr Woschnak said in a statement today.
“I leave the company in very safe hands, from the board level down to the management team and staff.
“I am a significant shareholder of Rent and a keen ongoing supporter of its future success.”
Rent chairman Garry Garside said what Mr Woschnak had achieved in the creation of Rent was remarkable.
“The board is very grateful for Mark’s vision and drive and the outstanding contribution he has made to the company and broader property industry over many years,” he said.
“He leaves Rent in a strong market position. We support and respect his decision to leave the company at this point in its development and we wish him every success with his future endeavours.”
Rent shares were unchanged at 14 cents each at 11am.
