Argex Titanium (TSX:RSX), a Laval, Quebec-based company that is developing an innovative and environmentally sustainable technology for producing high-grade titanium dioxide pigment, filed an NOI on June 18, listing approximately $4.7MM in liabilities. Still in the research and development stage, the company has been unable to raise the capital necessary to complete construction of a production plant. PwC was appointed proposal trustee and will be conducting a stalking horse sales process for the company's assets. Stikeman Elliott is counsel for the company.
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.
OrbCare, a Toronto, Ontario-based technology company that operates a cloud-based SaaS platform for healthcare professionals, filed an NOI on May 27, listing $927.4M in liabilities, including $775.0M to CRA. Founded in 2013, the company has developed software that merges the information doctors use and patients provide from a host of systems in order to streamline clinic operations and patient care. The filing comes less than 3 months after the company announced the completion of a $2.0MM seed financing round led by iGan Partners. MNP is the proposal trustee.
OSSimTech, a Montreal, Quebec-based technology company that designs, manufactures and sells virtual reality open surgery simulators, filed an NOI on May 27, listing approximately $3.8MM in liabilities, including $2.2MM to Investissement Quebec and $466.8M to CAE Capital. Deloitte was appointed proposal trustee. Davies is counsel to the company.
Ula-Matic, a Vaughan, Ontario-based company that designed and built automation equipment used in the automotive industry, was placed in receivership on April 8 on application by BMO, owed approximately $4.5MM. Employing approximately 45 employees, the company had been experiencing declining revenue and losses over the past two years as result of, among other things, a slowdown in the automotive industry and uncertainty surrounding the negotiation of international trade agreements. Grant Thornton was appointed receiver. Counsel is Chaitons for the applicant, Fogler Rubinoff for the company and Miller Thomson for the receiver.
Intelligent Engineering (Canada) Limited, an Ottawa, Ontario-based technology company that sold a proprietary structural composite material used extensively in civil, maritime and offshore construction projects, filed for bankruptcy on April 4, listing $4.3MM in liabilities, including $3.9MM to its UK-based parent company. MNP is the bankruptcy trustee.
Stantive Technologies Group, a Kingston, Ontario-based enterprise software provider focused on the development and deployment of its proprietary content management platform, OrchestraCMS, filed for protection under the CCAA on February 25. The company previously filed an NOI on November 14, listing $19.1MM in liabilities. EY was appointed monitor. TGF is counsel to the company.
Lanla, a Montreal, Quebec-based marketing research company, and Wizper, a digital advice management mobile app driven by customer experience-focused AI technology that is backed by Lanla's 15 years of customer experience expertise, filed NOIs on February 1. EY is the proposal trustee.
VersAccounts, an Ottawa, Ontario-based technology company that provides a cloud-based enterprise resource planning system, filed an NOI on January 22, listing $1.2MM in liabilities. The company's customers are typically fast growing companies looking to upgrade from entry-level accounting software; they pay an average yearly fee of $10.0M (USD) to use the company's software. Over the past two years, the company's financial performance steadily declined as it failed to meet sales projections and some existing customers chose not to renew their agreements with the company. Due to the company's poor performance, it was unable to secure further funding, including additional equity investment. The principal purpose of the NOI proceeding is to create a stabilized environment to allow the company to run a sale process for the company's assets. With the assistance of the proposal trustee, the company has negotiated the terms of an asset purchase agreement with Seattle Atlantic pursuant to which it will act as the stalking horse bidder in the sale process. Farber is the proposal trustee. Counsel is DLA Piper for the company, Dentons for the proposal trustee and Osler for Seattle Atlantic.
Klokwerks, a Toronto, Ontario-based company that produces technology-based sales programs, interactive marketing mobile apps, virtual reality, 3D photo-realistic renderings and film production for the real estate, automatic and retail sectors, filed an NOI on December 4, listing $855.0M in liabilities, including $636.6M to CRA. Dodick Landau is the proposal trustee.