Reeling from the loss of more than 20% of its shares last week, Montreal company Lightspeed Commerce announced Thursday the return of its founder Dax Dasilva at the helm.
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“I founded this company and am pleased to be named interim CEO to lead this next phase of profitable growth,” Mr. Dasilva said in a statement.
Recall that in 2022, Investissement Québec (IQ) paid more than $100 million to buy Lightspeed shares, while the Ministry of Economy (MEIE), led by Pierre Fitzgibbon, bought them for $33.5 million acquired.
IQ paid an average price of $31 per share, while MEIE paid an average of $28.50 per share. As of Thursday morning, Lightspeed shares were up about 3.4%, trading at $18.98 on the Toronto Stock Exchange.
On paper, IQ's investment in Lightspeed lost about $39 million, while MEIE lost about $11 million.
Chauvet leaves
Dax Dasilva will replace Jean Paul Chauvet, who is leaving the company after 11 years. The latter has held the position of President of Lightspeed since April 2016 and CEO since February 2022.
Last week, Lightspeed reported results that met financial analysts' expectations for the third quarter ended Dec. 31. During the three-month period, the company reported an operating profit of $3.6 million and a net loss of $40.2 million.
But investors fear Lightspeed's profit margins will shrink in the fiscal year that begins April 1, particularly because of planned investments to acquire new customers.
Founded in 2005, Lightspeed offers merchants cloud solutions and payment services as well as provider connection software.