TORONTO, Feb. 13 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a leading
non-traditional mortgage lender, today announced that it is implementing cost-
reduction measures, as it resizes its infrastructure. The principal measure
being implemented is the severance of approximately 26 employees, or about
18% of Xceed's workforce.
The company believes that these cost-reduction measures will not
negatively impact the volume of business it intends to originate and
underwrite during its fiscal year ended October 31, 2008. Not including
severance and other costs associated with this decision, Xceed expects
annualized savings of approximately $2 million as a result of these measures.
Xceed estimates that the measures being taken will result in
approximately $0.3 million in severance and other costs related to the
reduction, all of which will be recorded during its second quarter ended
April 30, 2008. Xceed thanks the departing employees for their contributions.
Forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties. Actual
results might differ materially due to various factors such as the competitive
nature of the mortgage industry, the ability of Xceed to continue to execute
its growth and development strategy, and the reliance of Xceed on key
personnel. Xceed assumes no obligation to update these forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in these. Additional information identifying risks and
uncertainties is contained in Xceed's regulatory filings available on its
website and at www.sedar.com.
For further information:
For further information: Investor and Media Relations: Richard Wertheim,
Wertheim + Company Inc., (416) 594-1600, or (416) 518-8479 (cell), or by email