Wellington Drive Technology is to cancel 80% of its shares and start a search for a new chief executive.
The maker of energy-efficient motors will undertake a 1:20 share consolidation at the end of the month, which will cut the number of shares from more than 1.3 billion to 67 million.
Wellington Drive has been a frustrating investment for shareholders, despite widespread acknowledgement of the superiority of its motors.
The company's share price has slumped to less than 2 cents each after continuously tapping investors for money to keep operating.
The consolidation is an admission the share price is too low and some analysts say Wellington Drive needs to get it higher so they can raise more capital in the future.
Meanwhile, chief executive Ross Green will take up a role advising the company about developing new markets, like China and Latin America.
Commentators view that positively, saying new blood is needed to make the company profitable for the first time in its history.
Wellington Drive also updated its trading situation, saying it lost gross earnings of $2.3 million in the four months to the end of April.
Revenue increased by half to $11.9 million while volumes jumped by nearly 60% to 420,000 units.
It's reviewing the future of its smaller ventilation motor business, which is expected to be complete in the next two months.
