Canadian financial technology firm Basis100 has initiated a further round of job cuts and reshuffled executive responsibilites as it moves to refocus its business on the US markets.
Under the restructuring, Gary Batholomew, Basis100 chairman is to hand over operational responsibilities to chief operating officer Joseph Murin, who will bring his experience in the US mortgage market to bear in a new role as CEO. He is joined on the board by John Albright of Albright Venture Partners.
The company has also relocated certain financial and administrative functions to the US, forcing the resignation of chief financial officer Lance McIntosh. He is replaced on an interim basis by James Pavlonniss, VP of finance with Basis100 Corp.
Effective immediately, Basis100 will be terminating a number of positions in Canada to reduce corporate G&A expenses. Existing staff in Toronto, Pittsburgh and Jacksonville will assume these functions going forward. Overall, these reductions will reduce ongoing operating expenses by approximately C$3 million annually. The company expects to take a one time restructuring charge of up to C$400,000 in the 4th quarter of 2002 against the cuts.
The lastest upheavals follow the successful application by Basis100 of an extension to the deadline for formal bankruptcy filing at its capital markets subsidiaries EFA Software and EFA International. The company says administrators are performing due diligence on a number of offers for EFA, which supplies exchange trading systems, and expect to announce a deal before the year end.
Seprately, Basis100 Inc. confirmed that its wholly-owned subsidiaries, e-Net Canada Financial Services, and Online Mortgage Explorer are both inactive.