Emergent Capital Inc. CEO Antony Mitchell on Aug. 10 notified the company of his plan to terminate his employment agreement, days before the company reported second-quarter results, according to an Aug. 14 regulatory filing. The date of his departure has yet to be determined.
The company also lowered its headcount to 12 employees from 20 employees. Among the staff to leave the company were David Sasso, vice president of investor relations and business development, and Christopher O'Reilly, general counsel and secretary.
The company said it plans to incur a one-time severance cost of about $1.2 million from the headcount reduction for the third quarter.
The company has also sold 12,500,000 common shares for a total purchase price of $5.0 million to Brennan Opportunities Fund I LP, as part of an agreement the two companies reached Aug. 11.
Brennan Opportunities also purchased $5.0 million of the company's new senior secured notes. Under another agreement with Brennan entered Aug. 11, the company is required to register the resale of Brennan's acquired shares.
For the second quarter, the company reported a net loss from continuing operations of $6.5 million, or 23 cents per share, up slightly from a net loss of $9.8 million, or 36 cents per share, in the prior-year period.
Total income for the quarter was $3.5 million, up from a loss of $15.8 million in the second quarter of 2016.
The company completed its recapitalization transactions in July.