Bankruptcies continue to hit the Canadian small cap landscape. The latest firm to wave the white flag is Arht Media (TSXV: ART), whom this morning indicated it had made a filing under the Bankruptcy and Insolvency Act.
MNP Ltd has been appointed as the firms licensed insolvency trustee, while all employees and contractors have been laid off as of today with operations fully ceasing. The firms board of directors has also fully resigned, with the bankruptcy announcement being made by the firms insolvency trustee.
The company indicated that while it had managed to reduce its overall cost structure, it was unable to secure additional funding needed to continue operations, with the company unable to hold out until the large scale rollout of its holographic products.
The filing for bankruptcy follows the company earlier this year raising $1.0 million across two tranches, with the debt set to mature August 3, 2025, while bearing an interest rate of 15%. The debt ranked pari passu with $3.1 million in existing subordinate debentures the company had outstanding.
Arht Media recorded $1.4 million in revenue in the second quarter, while reporting an EBITDA loss of $0.7 million. At the same time the firm had indicated it would be conducting a strategic review, which based on today’s filing, ultimately failed to find any alternatives for the company.
Information for this briefing was found via Sedar and Arht Media. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
