The Skidmore Group is backing Vancouver-based technology company UrtheCast (TSX: UR), an earth-imaging system for geospatial analysis. UrtheCast has built, launched, and operated the first commercially available cameras that provide continuous high definition video of Earth, from space.
UrtheCast has recently undergone re-structuring of its board of directors. It has replaced three of its directors and added four proposed nominees. The Skidmore Group nominated two of the proposed nominees, as per the terms of the financing agreement. "We endeavored to be forward-looking in our process, so as to nominate people who have deep knowledge and experience that enhances the capabilities of the UrtheCast board, so that management and the board can focus on delivering shareholder value through the execution of the business plan,” explained Rick Christiaanse, Chief Commercial Officer of the Skidmore Group. "We were pleased to see the existing board nominate two additional people to the board with experience and expertise that was previously lacking at the board level, as evidenced by the events of the past six months."
The Skidmore Group fully supports the proposed changes to the board. “We [Skidmore Group] are disappointed by the value destruction suffered by all stakeholders including employees, partners, suppliers, equity and debt holders over the past six months,” said Garry Skidmore, President of the Skidmore Group. "We see a real opportunity to develop a Canadian success story and believe in the company. As Canadian investors with a long history of investing in tech, we are pleased that the board has added new members with the requisite skills, industry knowledge and capabilities to move the company forward."
The board has diligently been exploring long-term growth opportunities that will create stability and growth for all the company’s stakeholders. Rick Christiaanse went on to explain that “the investment in UrtheCast comes from the strong confidence our team has in the long-term value the business can create. We are pleased to partner with this Vancouver-based company in a transaction that we firmly believe will reward all stakeholders over time.”
After much consideration, The Skidmore Group management team has determined that this investment in UrtheCast provides the best combination of transaction certainty, the potential for enhanced shareholder value, and is ultimately in the best interest of the company and its shareholders. "We believe that the hard work of the new investors, the debt partners and others who have worked on the proposed financial transaction will benefit shareholders, which is why we are making a significant investment", added Rick. "Skidmore strongly believes that the combination of new senior management and a reconstituted board are critical to the long-term success of UrtheCast, and has made its investment contingent on all parts of the plan being completed.