Swarmio Media has introduced that it’s looking for creditor protection.
The Halifax-headquartered gaming tech firm has filed an utility for creditor protection from the Ontario Superior Court of Justice below the Companies’ Creditors Arrangement Act (CCAA). Swarmio famous that this resolution follows “cautious consideration of all accessible options” and session with monetary and authorized advisors.
Per the submitting, as of June 10, Swarmio had whole liabilities of almost $10.3 million.
Through these CCAA proceedings, Swarmio stated it hopes to conduct a sale and funding solicitation course of within the hopes of addressing its sizable liquidity points, stabilizing its operations, and persevering with on as a going concern.
Founded in 2015, Swarmio, previously often known as Ubique Networks, develops web infrastructure and software program for the gaming and esports ecosystem. The firm’s options embrace proprietary, patent-pending sensible edge computing tech, and a gamer engagement and monetization platform. Swarmio’s administration is predicated within the Greater Toronto Area, whereas most of its different staff are situated and Halifax.
The firm’s options embrace proprietary, patent-pending sensible edge computing tech, and a gamer engagement and monetization platform. Swarmio has a presence within the Greater Toronto Area, the place the firm’s administration is predicated, and Halifax, the place most of its different staff are situated.
Swarmio presents a platform referred to as Ember that helps telecom corporations monetize their gaming prospects. The firm facilitates managed Discord chats, servers, occasions, streams, tournaments, challenges, and rewards, amongst different issues. To date, Swarmio claims a number of telecom corporations have launched Ember as an add-on for subscribers.
Swarmio first started buying and selling on the Canadian Securities Exchange (CSE) below the image ‘SWRM’ in late 2021, following a reverse takeover of a brand new holding firm it created. This holding firm secured $5 million by way of personal placement to help Swarmio’s enlargement into new geographic markets.
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Since then, nonetheless, the corporate has confronted difficulties. Its inventory worth has fallen precipitously—from $0.56 on the CSE when it first went public, to a fraction of $0.01 on the time of publication.
Earlier this yr, Swarmio swapped CFOs, bringing on Jonathan Visva in a full-time capability to switch Kyle Appleby, who was engaged on a part-time foundation. The firm claimed this transfer was in anticipation of a “high-growth part” following the worldwide deployment of its Ember platform. In March, Swarmio obtained $1 million in secured debt from an undisclosed current shareholder.
The submitting signifies that Swarmio has been struggling. Per the doc, by the top of 2022, Swarmio had property with a ebook worth of roughly $1.2 million. As of June 10, 2023, Swarmio had whole liabilities of almost $10.3 million. According to the submitting, Swarmio has 22 full-time staff and has fallen greater than $1 million behind on its payroll obligations.
Feature picture courtesy Pexels. Photo by Yan Krukau.