GMP Capital's Head of U.S. Operations Leaves
08 July 2016 - 3:00AM
Dow Jones News
The head of U.S. operations for GMP Capital Inc., one of
Canada's largest independent dealers, has left the firm, according
to a person familiar with the matter.
Chris Tate, who couldn't be reached for comment, left the dealer
earlier this week, the person said. GMP spokesman Rocco Colella
confirmed Mr. Tate's departure but declined to provide any reason
for the move.
The Toronto-based dealer has named Bob Schoenthal, a senior
executive within GMP's U.S. operations, to succeed Mr. Tate,
effective immediately, Mr. Colella said.
The departure comes amid GMP's efforts to retrench as it
contends with declining revenue from trading and investment banking
activities amid the prolonged slump in commodity prices.
Toronto-based GMP first expanded into the U.S. in 2011 through
its $33 million acquisition of Miller Tabak Roberts Securities LLC,
a New York-based investment-banking boutique that specialized in
institutional sales, secondary trading and research in high-yield
and distressed debt, convertible bonds and asset-backed securities.
The deal allowed GMP to diversify its equity-focused business into
the debt markets, while providing a platform to expand further into
the much larger U.S. capital markets. In 2014, GMP established an
office in Houston to bolster its energy-focused investment-banking
offering.
Mr. Tate helped spearhead the Miller Tabak acquisition as GMP's
head of corporate development group at the time of the deal. Mr.
Schoenthal also knows Miller Tabak well, being one of the firm's
original partners.
However, mired in losses, GMP announced plans in January to
scale back its U.S. energy businesses in Houston in New York. That
was part of a broader plan to cut 25% of its workforce, close its
offices in the U.K. and Australia and suspend its dividend in
response to weak market conditions.
In Toronto, GMP's stock price is up almost 9% so far this year
with the rebound in gold and crude-oil prices, which has spurred a
flurry of equity offerings by companies in these sectors. But the
stock price is still trading 17% below levels at the start of 2015,
underscoring the challenging environment GMP continues to face.
Write to Ben Dummett at ben.dummett@wsj.com
(END) Dow Jones Newswires
July 07, 2016 12:45 ET (16:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
RF Capital (PK) (USOTC:GMPXF)
Historical Stock Chart
From Nov 2024 to Dec 2024
RF Capital (PK) (USOTC:GMPXF)
Historical Stock Chart
From Dec 2023 to Dec 2024
