AcuityAds Reveals 92% Of Cash Held At SVB, Expects Operations To Be Uninterrupted
AcuityAds Holdings (TSX: AT) (NASDAQ: ATY) is breathing a sigh of relief this morning following a decision by the US government to backstop depositors of Silicon Valley Bank. The firm on Friday revealed after halting trading that it had over US$55.0 million in cash held at the bank.
The company elected to halt the trading of its stock “as a result of the unfolding situation with Silicon Valley Bank.”
A day earlier, AcuityAds had posted its fourth quarter financial results, in which they maintained that they had a cash and cash equivalents position of C$85.9 million as of December 31, however that figure has evidently declined in the time since. Outside of the US$55.0 million (or ~C$75.8 million) tied up at Silicon Valley, the firm indicated it had just C$6.7 million in cash that was accessible.
As a result, AcuityAds had approximately 92% of its cash held with Silicon Valley Bank.
Given a joint decision by the US Treasury, Federal Reserve, and FDIC to backstop depositors however, the company expects “its cash situation will be resolved without any interruption to its ordinary course operations and without it incurring any financial losses.” The company has reportedly taken action to ensure that it can “rely solely on its other banking relationships” going forward.
AcuityAds last traded at $1.94 on the TSX.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.