Novadaq Technologies Inc. (Novadaq) announced that Shane A. Ellis, vice president, legal affairs and corporate secretary, will be leaving the company and will not be replaced. In addition, John Reidy, Novadaq's chief financial officer, will be leaving the company effective January 14, 2008. He will be succeeded by Stephen Purcell, currently Novadaq's director of finance.
Prior to joining Novadaq in March 2008, Purcell amassed more than 25 years of senior financial management experience in the manufacturing, wholesale and construction industries. Most recently, he served as corporate controller of Sealy Canada Ltd. where, among other accomplishments, he led the subsidiary’s successful implementation of the Sarbanes-Oxley Act requirements. From 1996 to 2002, Purcell held the position of chief financial officer of Canron Corporation and, prior to that, he progressed through a number of financial management roles over the course of a 14-year career with Dominion Bridge.
The company announced a strategic restructuring including senior management changes and the completion of a staff reduction of 25 employees that was initiated during Q3-2008. Following the restructuring, Novadaq will have approximately 60 employees. The Company noted that the staff reductions were concentrated in administrative and support areas and are not expected to have any material impact on its research and development or sales functions.
The company expects to incur restructuring costs of approximately $300,000 associated with personnel-related termination costs in the fourth quarter of 2008. It expects savings from the restructuring efforts to reduce annual operating expenses by approximately $1,750,000.
On the staff reductions, Arun Menawat, Novadaq’s president and chief executive officer, said, “Earlier today, Novadaq announced the signing of multi-year License, Development and Supply Agreements with Intuitive Surgical. The payments associated with those agreements combined with our cash on hand, puts Novadaq in the fortunate position of having sufficient capital to continue to execute on our business plan. Nevertheless, in the current economic climate, we need to be proactive. We have taken this difficult step to reduce spending and extend our existing cash runway so that we may continue to focus on achieving net profitability through our direct sales and technology alliances. I thank our departing employees for their dedication, and wish them all the best as they pursue their personal and professional goals.”
With respect to the management changes, Menawat commented, “John and Shane have both earned my personal admiration and professional respect. Their contributions to the development of Novadaq’s growth strategy are immeasurable. I have appreciated their valuable counsel and I sincerely wish them the highest level of success in the future. At the same time, I am very pleased to have appointed a financial professional of Stephen Purcell’s caliber to the position of CFO. His long standing history of success in high growth and quick changing businesses, combined with his strong knowledge of Novadaq’s operations, will be a great asset as we continue to focus on driving the company’s growth toward profitability.”