OAKVILLE, ONTARIO--(Marketwired - Jan. 28, 2014) - BENEV Capital Inc. (TSX VENTURE:BEV.H) (the "Corporation" or "BENEV") is pleased to announce that the Corporation has entered into a services agreement (the "Services Agreement") with Maxam Capital Corp. ("Maxam") whereby Maxam will provide, effective as of January 1, 2014, accounting, tax and public company compliance services, head office and infrastructure services and transaction support services to the Corporation. Pursuant to the Services Agreement, Mr. Greg Gutmanis shall be appointed to the position of Chief Financial Officer of the Corporation, effective on March 31, 2014. Mr. Gutmanis will report directly to the Corporation's Chief Executive Officer, Mr. Sean Morrison, who is also an employee of, and the person to whom Mr. Gutmanis reports to at, Maxam. Mr. Gutmanis will succeed Mr. Fred Cranston, the Corporation's current Chief Financial Officer.
The Services Agreement with Maxam is part of the Corporation's initiative to decrease costs and overhead as the Corporation continues to seek to source, structure and complete one or more transactions designed to transform the Corporation and create meaningful value for shareholders. The Services Agreement will be for a minimum term of 6 months. Either party may terminate upon sixty days prior written notice thereafter. Pursuant to the Services Agreement, the Corporation will pay Maxam a monthly service fee of approximately $30,000 plus reasonable out of pocket expenses.
Mr. Gutmanis is well-qualified to serve as the Corporation's Chief Financial Officer. He is currently the Vice President of Maxam where he is responsible for due diligence, financial modelling, supporting transaction negotiation and deal completion, a position he will hold concurrently with his appointment as Chief Financial Officer of the Corporation. In addition, he is responsible for all financial reporting of Maxam's funds and management companies. Prior to joining Maxam, Mr. Gutmanis worked at Capital West Partners, a Vancouver-based investment banking firm. Mr. Gutmanis also served as a director and chair of the audit committee of Radiant Communications. Mr. Gutmanis holds a Chartered Accountant designation and a Chartered Business Valuator designation. The appointment of Mr. Gutmanis as Chief Financial Officer will bolster the Corporation's M&A capabilities as it seeks to complete a transformational transaction.
"We are pleased to reduce overhead and head office costs in order to preserve our strong cash position while we search for a transformative transaction" Mr. Morrison commented, "I would like to thank Mr. Cranston for his dedication to the Corporation and welcome Mr. Gutmanis to BENEV. I believe he will make an excellent addition both in overseeing the accounting as well as assisting in evaluating potential transactions."
The Corporation also announced that its head office will move to 1245 - 200 Granville Street Vancouver BC V6C 1S4 as part of the Corporation's initiative to reduce costs and overhead.
Forward Looking Statements
Certain statements contained in this press release and in certain documents incorporated herein by reference may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "confident", "plan" and "intends" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events, performance, or achievements of BENEV Capital Inc. to differ materially from those anticipated or implied in such forward-looking statements. BENEV Capital Inc. believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. Given these uncertainties, readers are cautioned that forward-looking statements included in this press release are not guarantees of future performance, and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date of this press release. BENEV Capital Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
All of the forward-looking statements made in this Press Release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, BENEV Capital Inc.