GMP Capital's Head of U.S. Operations Leaves

The head of U.S. operations for GMP Capital Inc., one of Canada's largest independent dealers, has left the firm, according to a person familiar with the matter.

Chris Tate, who couldn't be reached for comment, left the dealer earlier this week, the person said. GMP spokesman Rocco Colella confirmed Mr. Tate's departure but declined to provide any reason for the move.

The Toronto-based dealer has named Bob Schoenthal, a senior executive within GMP's U.S. operations, to succeed Mr. Tate, effective immediately, Mr. Colella said.

The departure comes amid GMP's efforts to retrench as it contends with declining revenue from trading and investment banking activities amid the prolonged slump in commodity prices.

Toronto-based GMP first expanded into the U.S. in 2011 through its $33 million acquisition of Miller Tabak Roberts Securities LLC, a New York-based investment-banking boutique that specialized in institutional sales, secondary trading and research in high-yield and distressed debt, convertible bonds and asset-backed securities. The deal allowed GMP to diversify its equity-focused business into the debt markets, while providing a platform to expand further into the much larger U.S. capital markets. In 2014, GMP established an office in Houston to bolster its energy-focused investment-banking offering.

Mr. Tate helped spearhead the Miller Tabak acquisition as GMP's head of corporate development group at the time of the deal. Mr. Schoenthal also knows Miller Tabak well, being one of the firm's original partners.

However, mired in losses, GMP announced plans in January to scale back its U.S. energy businesses in Houston in New York. That was part of a broader plan to cut 25% of its workforce, close its offices in the U.K. and Australia and suspend its dividend in response to weak market conditions.

In Toronto, GMP's stock price is up almost 9% so far this year with the rebound in gold and crude-oil prices, which has spurred a flurry of equity offerings by companies in these sectors. But the stock price is still trading 17% below levels at the start of 2015, underscoring the challenging environment GMP continues to face.

Write to Ben Dummett at [e-mail]

(END) Dow Jones Newswires

July 07, 2016 12:45 ET (16:45 GMT)

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