As most in our industry now know, Xceed announced the termination of 74 employees last week, as well as the resignation of its president and CFO.
The former-subprime-turned-prime lender now has 38 employees left. The company is also shedding office space and reducing its warehouse credit facility, as it struggles to be profitable.
CEO Ivan Wahl commented: “…it has become clear that there is no way of knowing when we will be able to return to [Xceed’s non-traditional mortgage] business model, if ever.”
For now, Xceed’s PR says it will focus on “continuing to originate approximately $40-45 million per month in new and renewing insured mortgage business that is saleable to the Canada Mortgage Bond Program.”
Wahl did offer hope by saying, “we expect that our business can return to profitability in the third quarter of fiscal 2008.”
We hope he’s right. Xceed is the underdog lender of the year and if they can pull it out, it’ll be a great story.
Xceed’s stock is down 83% from its 52-week high. It closed today at $1.32 a share.
Now the Globe is citing sources who say Xceed is a takeover target.