June 11, 2019
Clarocity (TSX-V: CLY), a Calgary, Alberta-based technology company, was placed in receivership on June 11 on application by StableView Asset Management, owed, along with other debenture holders, approximately $23.7MM. The company, through its US subsidiaries, provides traditional and next-generation residential real estate valuation and inspection services throughout the United States, Puerto Rico and the US Virgin Islands using proprietary technology solutions which include data technologies, automated valuation techniques and software solutions intended to assist clients in completing their jobs faster and more accurately than traditional real estate valuation methods. The company has reached a point where its working capital has been exhausted and it does not have the funds to either advance its business or repay its lenders and investors. A sales and investment solicitation process was attempted in December 2017 but did not lead to a transaction, with prospective purchasers sharing their views that the company lacked historical profitability, had a high cash burn rate and its technology platform had not proven its ability to generate revenue. Recently, one party, iLOOKABOUT, has come forward with an offer for the company's assets, with a transaction to be completed through a receivership. Hardie & Kelly was appointed receiver. Counsel is DLA Piper and Boyle & Co for the applicant, Dentons for the company, BLG for the receiver and Cassels Brock for iLOOKABOUT.