CHRA - Charah Solutions stock slips on suspending guidance after mixed Q3 results and management changes; approves 1:10 reverse stock split

• Charah Solutions ( NYSE: CHRA ) shares slipped more than 40% after reporting mixed Q3 results , leadership changes, the sale of Series B Preferred Stock and a one-for-ten reverse stock split of its common stock.
• The company entered a private placement with an investment fund affiliated with Bernhard Capital Partners to sell 30,000 shares of a new series of convertible Series B Preferred Stock, par value $0.01 per share, with an initial aggregate liquidation preference of $30M, net of a 4% Original Issue Discount of $1.2M, for net proceeds of $28.8M for liquidity and general corporate purposes.
• The board also approved a one-for-ten reverse stock split on November 14, 2022.
• "With our newly fortified balance sheet, strengthened leadership and expected growth in demand for our ESG solutions, Charah Solutions is positioned to grow," said Jonathan Batarseh, incoming President and Chief Executive Officer of Charah Solutions. "Every day, Charah Solutions improves our communities through producing sustainable environment solutions for our customers by remediating environmental risks and recycling what was previously considered unusable. These innovative solutions have and will continue to create tailwinds for our business. From mid-August through mid-November, we secured $42 million in new contract awards from new and existing customers."
• The company named CFO Jonathan Batarseh as President, CEO and Director, replacing Scott Sewell and appointed former corporate controller Joe Skidmore as CFO and Treasurer.
• Additionally, the company appointed Robert (Bob) Decensi as executive Chair.
• The company suspended previously announced guidance for FY2022 after leadership changes.
• On YTD basis, shares down around 80% .

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