Nathan Cohen, who has been serving as Chairman of the Special Committee, stated, "the strategic alternatives evaluation process did not result in the consummation of a strategic relationship or other transaction and at this time, we have concluded that focusing on new and independent strategic growth initiatives in addition to executing our current business plan is in the best long-term interests of our shareholders."
Changes to PMC Commercial Trust's Executive Management
The Company also announced today that in connection with its new strategic growth initiatives, it has effected a change in its Chief Executive Officer. Effective as of October 26, 2012, Lance B. Rosemore is no longer the Company's Chief Executive Officer. Mr. Rosemore has been CEO of PMC Commercial Trust since its formation in June 1993 and was responsible for the development and execution of the Company's tactical and strategic plans that have maintained the Company's profitability. Mr. Rosemore will continue to work with the Company in a consulting capacity to help ensure a smooth transition.
The Company has entered into a separation agreement with Mr. Rosemore. The Company will record a one-time severance charge of approximately $2.2 million during the fourth quarter of 2012 related to the separation agreement.The Board of PMC Commercial Trust announced that it has promoted Jan F. Salit, previously the Company's Chief Operating Officer and Chief Investment Officer, to Chief Executive Officer. As Chief Executive Officer, Mr. Salit will be responsible for taking a significantly more proactive approach to developing the Company's strategic growth initiatives that are being implemented to exploit the Company's core competencies, capitalize on opportunities to drive long-term growth and maximize value for our shareholders. Mr. Salit has been the Chief Operating Officer and Treasurer of the Company since October 2008. He has also been the Company's Chief Investment Officer since January 1994 and Executive Vice President since 1993. Mr. Salit's primary areas of responsibility have included oversight of the Company's day-to-day operations including the supervision of credit, marketing, legal and human resources functions. Prior to joining the Company, from 1979 to 1992, Mr. Salit was employed by Glenfed Financial Corporation and its predecessor company, Armco Financial Corporation, a commercial finance company, holding various positions including Executive Vice President and Chief Financial Officer. Mr. Salit stated, "Mr. Rosemore has been instrumental in the growth and success of PMC Commercial Trust and its predecessor PMC Capital. While he will no longer be involved in day-to-day operations, the Company will continue to benefit from his experience and knowledge of the Company's operations in his role as a consultant to the Company."