Today our client Invictus Financial Inc announced that the company has sold its operating business “Stockgroup Media Inc.” to a group led by current management. The terms include the assumption by the management group of approximately $1.5 million in negative working capital and approximately $2.1 million in vendor liabilities.
In September 2008 the company hired Marlin & Associates to review all strategic scenarios for the company including a sale. The financial market collapse in late 2008 led to a significant decline in the Company’s business. Even with significant cost cutting efforts and negotiations with vendors over the past year and a half the company was unable to change its working capital deficit. As a result of the decline in revenue and the impact on the Company’s balance sheet, the Board has been unable to find a suitable buyer. Having carefully reviewed all alternatives, the Board has now determined that it is in the best interest of shareholders to divest of the operating business and pursue new business opportunities for Invictus.