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June 20th 2018
Welcome to Kaizen. I’m Aaron Schere, and I’m here to help you set a course to financial solvency.
Today’s show focuses exclusively on the aerospace sector, beginning with Drake Interplanetary. For years, the popular spaceship manufacturer courted controversy without their stock price suffering. Investors remained bullish on the brand thanks to strong sales and positive consumer sentiment. That changed last year following a damning exposé by the Terra Gazette that featured audio of Drake’s longtime CEO, Jan Dredge, claiming that the company had no responsibility to ensure their ships didn’t end up in outlaw hands.
Dredge’s comments were quickly condemned. In the scandal’s wake, Jan Dredge stepped down, citing a desire to spend more time with her family, but a flurry of negative press and the company’s sinking stock price were believed to be the real factors in this decision. Drake’s board of directors elected her son, Jon Dredge, to be interim CEO. As his temporary appointment stretched from weeks into months, some investors wondered whether the ‘interim’ title still applied.
At a contentious shareholders meeting late last year, Jon Dredge assured investors that he had no intentions of remaining in the position. He claimed the board of directors had compiled a shortlist of potential CEOs and that the interview process would begin shortly. Early this year, Drake called a press conference in Odyssa to reveal Anden Arden as their new CEO. A veteran aerospace industry executive, Arden has a reputation as a ‘fixer’. Although he led several companies through difficult transitions, he didn’t stick with them long term. His hiring sparked a debate among investors as to whether Arden was hired to usher in a new era at Drake Interplanetary, or to merely mend the current situation.
Now, Anden Arden joins us to share his vision for Drake, and how the release of the first ship under his leadership, the Vulture, fits into those plans.
Aaron Schere (AS): Welcome back to Kaizen.
AS: Congratulations on the new position.
AS: There’s no denying that Drake has had a tumultuous year and is dealing with pressing problems on a number of fronts. As the new CEO, what’s at the top of your to-do list?
AS: In your opinion, what are those strengths?
AS: That’s a nice plug for the ship, but how much say did you have in its development and release?
AS: There’s no denying that ship development is a long and arduous process. There were rumors that Jon Dredge had decided to ramp up production on a salvage ship long before you entered the picture. I guess I’m wondering about your specific involvement in bringing this ship to market?
AS: Were you surprised when you landed the job?
AS: I ask because there were rumors that both Jan and Jon Dredge opposed your appointment.
AS: They specifically cited your handling of Waldvol Aerospace; a small specialty ship manufacturer that you were hired to run after the original CEO was indicted on embezzlement charges. They claim that under your leadership, the patents and intellectual property of Waldvol were sold off to the highest bidder until the company was absorbed by ArcCorp and dissolved. You and the remaining board were reported to have received a healthy payout while the other employees were terminated with nothing.
AS: So, you don’t believe that the damage to Drake’s reputation is of a similar level of magnitude?
AS: Does your appointment mean that Drake will try harder to keep their ships out of outlaw hands?
AS: We need to take a quick commercial break, but there’s more to come with the new Drake Interplanetary CEO. Plus, I’ll have a Market Breakdown on how a disrupted supply chain has affected the production outlook for both J-Span and Lightning Power Ltd.
That and more when Kaizen return.