Home Capital chairman: mortgage lender will fight OSC but focus on business
The Canadian Press
Published Friday, April 21, 2017 8:00AM EDT
Last Updated Monday, April 24, 2017 7:22AM EDT
TORONTO -- The chairman of Home Capital Group says he remains confident about the lending company's future despite recently announced allegations against the company, as well as two of its former CEOs and its current chief financial officer.
An open letter by Home Capital chairman Kevin Smith says the company recognizes that shareholder confidence has been shaken by the Ontario Security Commission's allegations, released Wednesday.
The OSC enforcement staff allege, among other things, that the company and three men misled shareholders through financial statements and conference call comments in 2015.
Following the OSC's allegations, Home Capital's stock (TSX:HCG) lost one-fifth of its value on Thursday, closing at $17.71 -- the lowest since August 2009.
But Smith's letter says Home Capital's core business performed well during the first quarter and its management team will remain focused on growing the company profitably while defending itself from the OSC's allegations.
Home Capital estimates it had 90 cents per share of diluted earnings for the first quarter under standard accounting and $1.02 per share on an adjusted basis. Full results are to be released in May.