Business

BikeExchange CEO resigns as company announces plans to raise capital  

The CEO of online marketplace BikeExchange has resigned, as the company has announced plans to raise capital. 

BikeExchange, a global online listing platform that hosts thousands of brands and retailers, recently announced that Mark Watkin, global CEO, has resigned immediately.

Watkin will stay on with the company, following five years of service, until a replacement has been found. 

Alongside the departure of the chief executive, BikeExchange (ASX: BEX) temporarily halted trading on the Australian stock exchange, pending a company announcement about plans to raise capital by issuing new shares.  

Trading has since resumed on BikeExchange stock, after the company announced plans to raise around AU$6 million (£3.3million) to support working capital and organic growth initiatives. 

Outgoing CEO Watkin said: “As an investor and shareholder in BikeExchange, I remain a strong supporter of the company, its people and strategy. I’d like to thank all the team for their work over the last five years. I believe the future is very bright for BikeExchange, as it delivers on its mission of making it easy to buy and sell all things bike.”

Co-founder of BikeExchange and current board member Sam Salter will step in as acting CEO, while Ryan McMillan has been promoted to chief operating officer. 

Salter commented: “Over recent years Ryan has fine-tuned our EU operations, leading the region to become our most successful and highest performing. It is this operating model that we are rolling out globally, led by Ryan.”  

Taylor Essick, co-Founder and CEO of Kitzuma will extend his role across the North American region to the combined BEX and Kitzuma businesses. 

Recently news outlet CyclingTips reported that BikeExchange’s cash reserves had dropped to AU$8.5 million in the first nine months of the financial year. 

Trading was suspended at AU$0.03 when trading was halted, down from around $0.35 cents in March 2020.  

Read more: Business groups and cycling advocates call for Cycle to Work scheme reform to unlock access for lower earners 

The company had recently expanded to wider markets, including the US, Colombia, Germany and the UK.  

Alex Ballinger

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