AMPD Ventures Inc (CSE:AMPD, OTCQB:AMPDF) said it is evaluating restructuring options for one of its subsidiaries, AMPD Technologies Inc, as it moves to significantly reduce the organization’s overall expenses.
The company said in a statement that it intends to reduce or eliminate the monthly cash burn for the AMPD Technologies subsidiary by reducing the team size and operating expenses beginning this week, given the current overall market conditions in the technology sector are “exceptionally challenging.”
It plans to maintain AMPD Technologies’ operation and its current clients by matching the resources and spend with the current revenues being generated.
AMPD Technologies will continue to pursue opportunities to increase its revenues and grow organically without the need for cash investment, AMPD Ventures said.
The company said its focus is on reducing its monthly cash burn and developing its other subsidiary Departure Lounge Inc, which the company said has been demonstrating strong growth potential.
Departure Lounge’s revenues have been increasing quarterly and it is expected to be cashflow break even or cashflow positive by summer 2023, it noted.
"AMPD Ventures' focus will be to build on the positive momentum at Departure Lounge, where we see solid revenue growth and the path to profitability,” commented AMPD Ventures CEO Anthony Brown.
“The recent nomination at the South by Southwest global film, tech, and music festival has further validated their technology and highlighted their leadership position in the world of volumetric capture and virtual world development."
The company noted that it was also considering both board and management changes to better equip itself to meet its objectives.
AMPD Ventures' stated mission is to advance the way digital content is created and consumed by building the world’s best suite of tools and technologies for digital content creation and distribution.
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