Gediminas Jasionis
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Gryphon Gold Corporation (TSE:GGN) (OTC:GYPH) Crashes Down as CEO Leaves

by Gediminas Jasionis Feb 6, 2012
ggn_chart.pngGryphon Gold Corporation (TSE:GGN) (OTC:GYPH) had the stock price collapse after the company declared resignation of their CEO.

On Friday, GGN stock price collapsed 17.8% under a trading volume of 4.1 million, which was nearly ten times heavier than the 90-day daily average of 412 thousand. GGN broke below support at 21.5-22 cents. The next support line that could make a difference is around 17.5 cents per share.

The stock price tanked shortly after the company announced that their Chief Executive Officer John L. Key has resigned from his position. T. O'Neil has stepped in to replace Mr. Key on an interim basis. Mr. Key was alleviated of all of his positions within the company and its subsidiaries.

Speculations have been ongoing, trying to pinpoint the reason behind this change in management. The CEO had to stay with the company for 30 calendar days after giving a resignation notice. People on trading forums assume the reasons could be from unmet production guidance/targets to problems with recent debt financing, which requires a stable cash flow to meet payments.

gryphon_gold_logo.jpgA follow up disclosures from the board could be expected to come out on Monday morning, else the panicking crowd might bring the price further down.

The current CEO Mr. O'Neil holds a Bachelor of Science from Arizona State University and a Master of Business Administration from Arizona State University. Considering only the more notable previous positions, he had served as Vice President-Finance at Asarco Incorporated and later at Appolo Gold Corporation.

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