Joel Matlin’s sudden departure from AlarmForce (AlarmForce Stock Quote, Chart, News: TSX:AF) may have puzzled the street, certain shareholders, and Matlin himself, but at least one person close to the situation thinks it was a positive development.
Alarmforce independent director Pavel Begun has been scooping up shares of the Canadian security provider for much of this month.
On Wednesday, Begun picked up 20,000 shares of Alarmforce at $10.05, adding to the 17,100 he bought at $9.99 the day before and several other open market purchases earlier this month.
Following a lengthy and unsuccessful search for a buyer, the board of Alarmforce announced it had fired CEO Matlin in late July. The board said it would begin a search to find a suitable successor, but in the meantime CFO Anthony Pizzonia would fill the role.
Matlin said the development was a complete surprise.
“I should not have been let go,” he told the Toronto Star. “I believe it was done not in the best interest of shareholders and it’s a political manoeuvre on the part of the board. It’s not something I anticipated at all, quite frankly. I’m as shocked as everyone else is.”
Matlin hinted at a return.
“If I can get the shareholders’ approval I expect to be back, obviously with a new board and a new mandate to grow the company,” he said.
Founded by Matlin in 1988, home security systems manufacturer AlarmForce has grown to more than a quarter-million subscribers in Canada and the U.S. In mid-June, AlarmForce announced its Q2 results. For the six-month period ended April 30th, the company’s revenue rose 9%, to $ 24.02-million.