A stock photo of a corporate boardroom.Arpad Benedek/Getty Images/iStockphoto
As technology stocks have boomed, shares of technology investor Difference Capital Financial have gone the wrong way. Thursday, the company founded by high-profile trader Michael Wekerle unveiled a restructuring aimed at turning things around.
Amid talk of pressures building inside the firm, Difference said that three directors would leave. The company also said it would sell a large block of stock in another company, raising $22-million that should answer any questions about liquidity. There are also likely to be further personnel changes at the company that manages the publicly traded side of Difference.
Mr. Wekerle founded Difference after leaving GMP Securities, where he made his name as one of the most talented equity traders on Bay Street. As traders go, he has a larger-than-life media persona, featuring in society magazines. This fall, he is set to join CBC's Dragons' Den program.
Things have not gone totally smoothly for Difference. Mr. Wekerle has surrounded himself with high profile names, but on the investment side, some of Difference's investments have struggled. For example, Difference owns debt issued by World Gaming, an online gaming provider that just underwent a restructuring of its own and has yet to reach profitability. World Gaming now will not repay Difference and other lenders until next year.
Difference said Thursday that Wes Hall, Ivan Fecan and Paul Sparkes are quitting the board, and that the management copmany is planning a "rigorous portfolio review." One asset is already being sold. The sale of 11-million shares Benev Capital will raise $22-million, and also will end a fight between Difference and Benev over the future of that company.
Analysts point out that there are some winners in the difference portfolio, but they are obscured by more troubled investments such as World Gaming.