ASHLAND Former Braidy CEO Craig Bouchard received $6 million to walk away from the company he founded, according to the latest filing to the Securities and Exchange Commission.
The $6 million pay day for the embattled former executive is just one of the many cards the company laid down on the table in the public filing released on Monday.
While a Braidy spokesperson chose to not disclose whether Bouchard still had an interest in the company last week, the report filed by the company states the founder and the company agreed to “mutual releases by the parties, the redemption of all of Mr. Bouchard's equity interests in the company” as well as “certain non-competition and non-solicitation covenants by Mr. Bouchard.”
While Bouchard may be off to greener pastures, the board of directors now has two additions: Terry Gill and Bruce Kramer. In addition to board positions, Gill has been named the interim president of Braidy Atlas LLC, while Kramer is the acting Chief Financial Officer of Braidy Industries.
Gill was the Secretary of the Kentucky Cabinet for Economic Development from January 2017 to May 2019. The cabinet was the lead agency in bringing Braidy to the area — it was through the cabinet that the $15 million investment was secured.
Gill was an advisor to the board of directors following his departure from state government. He was appointed as the president of Braidy Atlas in April, per the report.
Kramer is the former CFO and Treasurer of Charah Solutions, the company Braidy Board Chairman Charles Price helmed until January 2019.
The expected date for the aluminum mill at EastPark to get up and running is now 2023, a year later than prior predictions. When Braidy first came to the FIVCO area, the company announced an opening date of 2020 — so far, the visible construction on the hundreds of acres in the industrial park is a fence.
The company stated in the report that “there are currently no binding debt commitments or arrangements to finance the construction of the Braidy Atlas Mill.” Current estimates of the project cost has risen to $1.7 billion, per the report.
The report also sheds light on the status of Rusal — a Russian aluminum company with ties to the Putin government — which has a $200 million investment into the company announced in July 2019.
So far, Rusal, through its American subsidiary Allow Rolled Products LLC, has contributed $75 million to Braidy Industries. This month, Braidy Industries pulled $10 million out of its Braidy Atlas subsidiary — the actual company controlling the mill — to pay Rusal.
Braidy was supposed to receive $100 million in 2019, as long as the company could secure $300 million in investments within four months of signing the agreement. Since the company failed to get the funding, Rusal froze its payout a $125 million shy of the overall deal. The report also states Rusal can walk away at any time.
If certain regulatory structures change, Rusal can ask for its money back, the report states.
In addition to the deal, if Braidy commences operations, it will have a 10-year contract to purchase aluminum from the Russians.
The report also makes note of the Dec. 31, 2020, deadline on investing $1 billion before the Commonwealth of Kentucky can ask for its $15 million back.
“Any requirement to return capital to the Commonwealth of Kentucky could complicate efforts to raise additional capital that may be required to complete the construction and development of the mill,” the report states.
In addition to the $75 million from Rusal, the report states the company raised $2.4 million during its stock offering last year.
As noted in the report, the company has been operating at a loss since its inception because it is still trying to get the funds together to build the plant. As of the end of last year, the company had an accumulated deficit of $152.9 million and expects to continue losses and negative cash flows for the next three years, the report states.
If the $300 million is not raised, the report states there “may otherwise have a material adverse effect on Braidy Atlas and Braidy Industries.”
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