TORONTO, May 13, 2014 /CNW/ - The board of directors of Equity Financial Holdings Inc. (TSX: EQI) ("Equity" or the "Corporation"), a Canadian financial services company serving the alternative retail mortgage market, today announced the appointment of Mr. Michael R. Jones as the Chief Executive Officer of Equity and its wholly owned subsidiary, Equity Financial Trust Company ("Equity Trust").
Mr. Jones has been the interim President and CEO of the Corporation and Equity Trust since
February 25, 2014 and his appointment was the result of a board led executive search which commenced following the settlement of the shareholder action by Smoothwater Capital Partners LP I, the largest shareholder in Equity.
New CEO Has Significant Expertise and Experience in the Canadian Alternative Mortgage Industry
Mr. Jones has extensive experience in the Canadian alternative mortgage industry, having led XCEED Mortgage Corporation as President and Chief Executive Officer after being appointed in 2002 as President and Chief Operating Officer. During his tenure at XCEED, mortgages under administration grew to $2.7 billion by 2007, all of which were alternative mortgages. At XCEED, Mr. Jones built a strong presence in the mortgage broker channel, which originates all mortgages issued by Equity Trust. Prior to joining XCEED, Mr. Jones spent over a decade at CIBC Mortgages/First Line Trust where he was most recently the Vice-President Commercial Mortgages and Non-Conforming Residential Lending.
Throughout his career, Mr. Jones has managed alternative residential mortgage organizations, led mortgage sales and marketing teams, built extensive relationships with the mortgage broker community, developed strong real estate underwriting skills and had frequent communications with investors and analysts.
Mr. Jones commented, "I am excited to be leading the team at Equity Financial. Together, our focus will be on creating sustainable value for our shareholders by building strong and mutually beneficial relationships with our customers, employees and other key stakeholders."
"On behalf of the entire board, we welcome Michael as the new CEO of Equity," said Mr. Don Wright, Chairman. Stephen J. Griggs, Vice-Chair continued: "Michael brings a wealth of experience in alternative mortgage lending across Canada and a depth of knowledge of all aspects of the industry. Michael has begun the rebuilding process at Equity in the last several months and is now focused on putting in place the team and resources needed to grow. Michael Jones has the full confidence of the board and we look forward to working with him in making Equity Financial a success."
CEO has Strong Alignment with All Shareholders
Equity has entered into an employment agreement with Mr. Jones, which ensures a strong alignment between Mr. Jones and the interests of shareholders while he is employed as the CEO. His arrangements include:
•The obligation for Mr. Jones to hold a minimum of three times his annual salary in equity and/ or long term incentive compensation programs tied to stock performance; and •A performance conditioned stock option grant of 330,000 shares, vesting over a 3 year period subject to share price floors of of $15, $20 and $25, respectively.
Outlook for Equity
Mr. Jones continued, "We are currently focused on replacing and rebuilding the foundations for success in the medium and long term for all shareholders. This will require further investments in people and systems as we build the infrastructure needed to grow our mortgage portfolio and to take advantage of related opportunities in the Canadian mortgage market."
Forward Looking Information
Certain portions of this press release as well as other public statements by the Corporation contain "forward-looking information" within the meaning of applicable Canadian securities legislation, which is also referred to as "forward-looking statements", which may not be based on historical fact.
Forward-looking statements reflect the Corporation's current views with respect to future events and are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Readers should not place undue reliance on such forward-looking statements, as they reflect the Corporation's current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant uncertainties and contingencies. Many factors could cause the Corporation's actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, the risks detailed from time-to-time in the Corporation's quarterly filings, annual information forms, annual reports and annual filings with securities regulators. The Corporation disclaims any intent or obligation to update or revise publicly any forward-looking statements whether as a result of new information, estimates, future events or results, or otherwise, unless required to do so by applicable laws.
About Equity Financial Holdings Inc.
Equity is a Canadian financial services company serving the alternative retail mortgage market through its federally regulated and wholly-owned subsidiary, Equity Financial Trust Company. Learn more at www.equityfinancialtrust.com.
SOURCE Equity Financial Holdings Inc.