Canada NewsWire, Thursday, December 5th, 2002.
Basis100 Inc. (TSX: BAS), a technology solutions provider for the financial services industry, today announced it has reduced its corporate expenses by $3 million (Cdn) annually and has restructured its executive office with the focus on growth in the USA market.
Changes to the Board of Directors
Effective immediately the Board of Directors of Basis100 is pleased to announce the appointment of two new directors and regretfully announces the resignation of one existing director. Joining the Board of Directors are John L. Albright of J. L. Albright Venture Partners and Joseph J. Murin of Basis100. Prior to the founding of J. L. Albright Venture Partners in 1996, Mr. Albright held senior positions with Jefferson Partners, First City Capital Markets and Central Capital Corporation. Mr. Albright is a Chartered Financial Analyst and received his Bachelor of Business Administration degree from the Schulich School of Business at York University. Mr. Albright serves as a director of Descartes Systems Group Inc., Indian Motorcycle Company, Q9 Networks Inc., and Triple G Systems Group Inc.
Also joining the Board of Directors is Joseph J. Murin as a director and senior officer of Basis100. Mr. Murin has been acting as Chief Operating Officer of Basis since December of 2001 and brings his operational experience and USA mortgage services market experience to Basis100. "The appointment of the new directors, including the recent appointment of Mr. Kenneth Rotman, strengthens Basis100's Board of Directors with operational and capital markets expertise" states Gary Bartholomew, Chairman of Basis100. Regretfully, Basis100 announces the resignation of Ivan Wahl as director. Mr. Wahl provided tremendous input into the growth of Basis100 and its strategy and will pursue other full time responsibilities. The Board of Directors of Basis100 Inc., now consists of Gary Bartholomew, Chairman, Joseph Murin, Jason Smith, Michael Johnston, Victor Hum, Burt Napier, John Albright, and Ken Rotman.
Changes to the Executive Office
Effective immediately Joseph Murin will assume the responsibility of Chief Executive Officer of Basis100. Mr. Murin will focus on the execution of the strategy and operations of Basis100. Gary Bartholomew will act in a full time capacity as Chairman of the Board, focusing on strategy, capital markets relations, and transitioning all operational responsibilities to Joseph Murin. With the increased focus on the USA market, the company will relocate certain of its financial and administrative functions to the USA. Consequently, Lance McIntosh, Chief Financial Officer, has tendered his resignation, but has agreed to assist Basis100 with certain transitional matters. Mr. James Pavlonnis of Jacksonville FL, will assume the position of interim CFO of Basis100. Mr. Pavlonnis has been acting as VP Finance for Basis100 Corp., operating in Jacksonville FL. "It is important to have USA based expertise around the execution of the USA strategy at the most senior levels of the company" states Mr. Murin, CEO Basis100, "Having worked with Mr. Pavlonnis for the past 15 years directly in the financial services market, I know he brings to the position not only direct market experience, but experience in financial management in both public and private companies".
Changes to the Corporate Administration
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 $3 million (Cdn) annually.
One Time Restructuring Charge
Basis100 expects to take a one time restructuring charge for severances and vacation pay of up to $400,000 (Cdn) in the 4th quarter of 2002.
Progress on the Sales of the EFA Software Assets
The process of selling the assets of EFA Software is underway and we expect to see this process concluded in January 2003, as indicated in the December 2, 2002 press release. The company is reviewing offers and is continuing the due diligence process with interested parties.
Corporate Matters
On a separate matter, Basis100 Inc. confirmed that its wholly-owned subsidiaries, e-Net Canada Financial Services Inc., listed as a holding company in the Annual Information Form dated May 21, 2002 and Online Mortgage Explorer Inc., listed as an operating company in the Annual Information Form dated May 21, 2002, are both inactive.
