The US Government is evidently moving quick in relation to making depositors of Silicon Valley Bank (NASDAQ: SIVB) whole.
AcuityAds (TSX: AT) this morning is reporting that it has received previously held funds at the bank in whole. The company evidently is taking no chances going forward, having transferred its funds out of the US banking system entirely and placing the cash with a Canadian Schedule 1 Bank.
“After reporting strong fourth quarter 2022 results on the back of tremendous illumin momentum, we can now turn our attention back to growing our business and continuing to increase our market share,” commented CEO Tal Hayek on the recovery.
The firm on Friday had halted the trading of its stock, pending the outcome of events related to SVB. AcuityAds had US$55.0 million tied up at the bank, far exceeding FDIC depositor insurance levels of $250,000. The funds amounted to roughly 92% of the cash held by the company, with the future of that cash bringing into question the future of the company as a whole.
On Sunday, the US Treasury, Federal Reserve, and FDIC jointly announced that they would be fully backstopping depositors of the bank.
AcuityAds last traded at $2.10 on the TSX.
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