Mongolia Growth Group Ltd. Successfully Executes Cost-Savings Plan; Eliminates Over CDN $1,000,000 of Recurring Costs
TORONTO, Ontario, February 11, 2015 /FSC/Mongolia Growth Group Ltd. (YAK ‐ TSXV and MNGGF – USA) (“MGG”) or (“the Company”) a commercial real estate investment and development company participating in the dynamic growth of the Mongolian economy announces the successful completion of cost cutting initiatives.
Over the past few months, the company has undertaken a thorough review of its expenditures with the goal of dramatically reducing all expense categories. In total, the Company has identified in excess of CDN $1,000,000 in recurring costs that have now been eliminated either through the discontinuation or renegotiation of contractual terms.
The majority of these savings have already taken effect with several additional expenses expected to trail off over the next few months. These costs primarily relate to staffing, service providers and various professional fees. It is anticipated that the elimination of these expenses will have a negligible effect on the operating business.
“This first round of savings will directly strengthen our profitability. I feel strongly that there are substantial additional savings to be realized in the next few months as we continue our process of evaluating every expense in the business,” said Harris Kupperman, Chairman and CEO of MGG.
The Company is currently preparing for a second round of substantial expense reductions primarily targeting professional fees and various discretionary expenses. It is expected that these reductions will be finalized and implemented during the second quarter of 2015.
For further information on the Corporation, please visit www.mongoliagrowthgroup.com
Mongolia Growth Group Ltd. is a publicly traded and leading property investment and development company in Ulaanbaatar, Mongolia. MGG owns an extensive property portfolio, in diversified segments of the property market, with an emphasis on institutional-grade commercial assets.
MGG undertakes its own property acquisitions, develops brownfield land assets and repositions outdated properties, relying on in-house services for all facets of both the investment portfolio and development side of the business. In addition, MGG acts as a full-service third party provider for institutional clients and tailors transactions covering acquisition-to-suit, build-to-suit, as well as refurbish-to-suit, for property owners and major tenants.
Forward-looking Information Cautionary Statement
Information and statements contained in this Letter to Shareholders that are not historical facts are “forward-looking information” within the meaning of applicable Canadian securities legislation and involve risks and uncertainties.
Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. MGG cautions the reader that such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking information.
Such risks and uncertainties include, but are not limited to: risks associated with investment in and redevelopment of real property in Mongolia; competition, financing and refinancing risks; risks to the consumer mortgage market; a lack of correlation between disposable income and consumption; risks related to economic conditions; risks related to mining and mining development in Mongolia; risks related to regulation of the real estate in Mongolia; political risk in Mongolia; changes in Mongolian taxation rules; reliance on key personnel; environmental matters; tenant risks; and other risk factors more particularly described in in MGG’s filings with Canadian securities regulators, which filings are available at www.sedar.com.
Additional risks and uncertainties not presently known to MGG or that MGG currently believes to be less significant may also adversely affect MGG. Forward-looking information is designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes. MGG does not undertake any obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except to the extent legally required.
The TSXV has not reviewed and does not accept responsibility for the adequacy or accuracy of this Press release.