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     230  0 Kommentare New Management Team Protecting Shareholder Value Following Small’s Destructive Tenure at Dealnet

    TORONTO, April 16, 2020 (GLOBE NEWSWIRE) -- Dealnet Capital Corp. (“Dealnet” or the “Company”) (TSX VENTURE: DLS) today provides a comparison of operating performance under Dr. Steven Small (“Small”) and the new leadership team that exposes Small’s value destruction and mismanagement. Following Small’s departure, Brent Houlden and the new leadership team moved with skill and discipline to fully address the legacy issues created by Small. Within one quarter of Small’s termination, the new leadership team dramatically reduced quarterly losses. For the last six quarters, the Company has been operating as expected, with no unusual surprises or adjusted earnings.  

    “The numbers demonstrate Small’s track record of value destruction and mismanagement,” states the Company. “A series of flawed plans, executional failures and operational missteps under Small’s leadership failed to address fundamental issues at Dealnet, which was on the brink of bankruptcy and running out of cash. The new management team and the Board addressed this untenable situation.”

    The Company concluded: “The new management team’s focus is on moving the business forward, in the best interests of all shareholders. Although Small continues to make misleading statements, the numbers tell the story and the Company believes its sophisticated and valued shareholders can separate fact from fiction

    Small joined Dealnet on June 16, 2015 as Executive Chairman, the most senior management position at Dealnet. During his tenure, the Company reported total losses from continuing operations of over $64M and had no credible plan to reaching profitability.  All of the equity investment raised by Small was lost through mismanagement. In contrast, the new leadership team turned the business around, re-ignited growth and has avoided any shareholder dilution. 

    Examples of mismanagement under Small and improvements under the new team can be found below. An investor presentation with further details can be found at www.dealnetcapital.com/additional-info/.

    Small’s Failed Purchase and Operation of EcoHome Saved by New Management

    Dealnet purchased EcoHome on February 18, 2016 for $34.5M ($3.2M of ‘hard’ net assets and $31.3M of goodwill). 
    Under Small’s leadership, originations spiked the following three quarters as a result of non-commercial and reckless credit underwriting, resulting in a cumulative default rate of 15% in 2016. Alarmed by the spiraling delinquencies, Dealnet’s funders stepped in at the beginning of 2017 and required Small’s management team to change its credit underwriting practices. Almost all of EcoHome’s goodwill was written off at the end of 2017, due to dealer terminations and poor operating results from Small’s leadership team.  

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    New Management Team Protecting Shareholder Value Following Small’s Destructive Tenure at Dealnet TORONTO, April 16, 2020 (GLOBE NEWSWIRE) - Dealnet Capital Corp. (“Dealnet” or the “Company”) (TSX VENTURE: DLS) today provides a comparison of operating performance under Dr. Steven Small (“Small”) and the new leadership team that exposes Small’s …