Background

• Introduced by VCs who were co-investors
• Company had demonstrated the technical merits of the software and attracted significant industry partners but had failed to achieve acceptable revenue growth or targeted milestones
• Runway was reduced to approximately eight months and management had lost the confidence of the board in delivering on plan

Activities

• Contracted to provide a phase one assessment of the company to address primary business issues and provide recommendations for strategic direction
• Completed a full evaluation of the company’s business programs and recommended a refocus of resources on highest value segments in conjunction with the implementation of a cost control plan including a reduction in force to reduce monthly burn by 25%
• Recommended an additional financing from the existing shareholder group which was approved by the board
• Provided interim management to implement plans
• Recognized value in splitting the business assets from the non-capital tax losses

Results

• Completed creative transaction to bring new investment and restructure company in oil and gas sector with leading Canadian Energy Trust
• Business assets sold to public company providing business process outsourcing in the Internet services market