Envoy Capital Group Inc. Announces Restructuring; All Directors Resign
Envoy Capital Group Inc. (NASDAQ: ECGI) announced today that the independent members of its board of directors have approved the completion of a restructuring designed to significantly reduce the Company's corporate structure and associated costs. As part of the Restructuring, the Company is in the process of transferring all of its assets in Envoy Capital Group Monaco S.A.M. to itself in Canada and going forward will operate its merchant banking business solely from its offices in Toronto, Ontario.
The decision to complete the Restructuring was made to increase the Company's profitability over the long-term. Management expects that the Restructuring will result in an approximately 60% reduction in the Company's current overhead. While there is still uncertainty in the global capital markets, management is cautiously optimistic that the significantly lower overhead will help to better position the Company as it continues its merchant banking strategy into the future. The total one-time cost of the Restructuring is estimated to be approximately $5,600,000.
Each of the Company's current directors have resigned and have been replaced by Robert Pollock, Tim Sorensen, David Guebert and John K. Campbell. Mr. Pollock has been appointed as the Chief Executive Officer of the Company. The Board would like to thank the out-going directors for their service.
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