Dye & Durham, a Canadian cloud-based software company, announced on Monday that it will explore the possibility of selling all or part of its noncore assets as part of a strategic review. This decision comes in response to concerns from shareholders regarding the company's high debt levels.
The strategic review will focus on expediting the company's plans to reduce its leverage ratio. CEO Matthew Proud emphasized the importance of debt reduction and aims to achieve a ratio of less than four times total net debt to adjusted earnings before interest, taxes, depreciation, and amortization.
To generate additional capital and decrease debt levels, Dye & Durham will evaluate various options during the strategic review. This includes the potential sale, either partial or complete, of assets that are not considered part of its core business, such as the company's financial services division.
The company's shares have experienced consistent pressure since it announced increased investments in mergers and acquisitions during its fourth fiscal quarter in September. As a result, shares have declined by 34% in 2023, closing at 10.80 Canadian dollars ($7.82) on Friday.
CEO Matthew Proud acknowledged shareholders' expectations to reduce the company's leverage ratio and expressed confidence that the strategic review would accelerate this process.
Note: Contact details have been removed to comply with the given instructions.