Ottawa’s Magor considers sale as losses mount

Board members of Kanata-based telecom firm Magor Communications (TSX-V: MCC) could be looking for suitors to buy the company as part of a strategic review that follows several years of disappointing financial results.

Magor’s board of directors is led by Ottawa tech icon Terry Matthews and is backed by Wesley Clover.

The company, which makes visual collaboration software, said it lost $1.56 million in its first quarter. That’s an improvement on the $1.58 million in red ink that it reported during the same period a year earlier, but comes after the company posted a dramatic drop in revenue during its most recent fiscal year.

Magor is also without a permanent CEO after its former chief executive, Mike Pascoe, stepped down at the end of August. Brian Baker, Magor’s chief financial officer, is acting as interim president and CEO.

The company burned through half of its cash on hand during the quarter that ended July 31 and is down to $47,307.

To help it cover expenses, Magor said this week that it was borrowing $690,000 from another company controlled by Mr. Matthews. Other outcomes of the strategic review could include attracting additional outside investment, a merger or recapitalization, the firm said.