Prospect Resources (ASX:PSC) has just announced a change to its board.
Prospect Resources announces that Executive Director, Mr Harry Greaves, has advised he is stepping down from the Board following a well-planned transition.
Harry was a founding of Prospect and under his leadership, the Company acquired a portfolio of grassroots exploration assets comprising gold, rare earths and lithium.
This led to the subsequent discovery and drill-out of the Arcadia Lithium Project, a global top ten hard rock lithium asset.
Shares of Prospect Resources have fallen 1.030% following the announcement.
Any change in the make-up of a company?s board can have an impact on a company?s stock price.
Generally, age-related turnovers and voluntary resignations have a marginal impact on the share price.
However, when either the Chairman or another board member is ousted, this can have a significant impact on the stock price.
As the role of the board is to endorse the strategy of the business, changes to the board can have an impact on the strategic direction of the company and therefore it?s future profitability.