Cerebri AI Corporation

Cerebri AI Corporation, a Toronto, Ontario-based software development business, filed an assignment in bankruptcy on December 7, listing approximately $10.2 million in liabilities. The company was doing research and development work for its parent company, which is based in the United States, and selling the software products in Canada. The company worked closely with certain banks and other corporations for their software needs. Some of the potential clients shelved the projects and deferred investment into new software products during the initial phase of the COVID-19 pandemic given the uncertainty prevailing at that time. Other products were unable to go past the development and testing phase. The business incurred significant costs for development and testing and, when it did not materialize into a licensing agreement, the funding dried up and the company was unable to meet its obligation to its creditors and investors. It ceased operations around June 2022 and eventually filed an assignment in bankruptcy. Goldhar & Associates is the bankruptcy trustee. By Dina Milivojevic

Payslate Inc.

Payslate Inc., a federally incorporated technology company that operates an online rental payment processing service for property owners and managers, filed an NOI on December 5, listing approximately $5.1 million in liabilities. The company is extra-provincially registered in British Columbia and Alberta, and also operates in the US through its wholly-owned subsidiary, RentMoola Payment Solutions LLC. The company's 21 employees, the majority of whom are located in British Columbia, operate entirely on a remote basis, and the company has no physical premises. The company began operations in April 2013 and, since that time, has incurred consolidated operating losses of approximately $39.4 million, primarily as a result of the company's inability to generate sufficient revenue or sufficient gross margins from revenue to cover its operating expenses. The company introduced a convertible note offering in an attempt to raise financing while it restructured its operations, but raised significantly less than the $4 million required. Grant Thornton is the proposal trustee. BLG is counsel for the company. By Dina Milivojevic

iS5 Communications Inc.

iS5 Communications Inc., a Mississauga, Ontario-based company that provides customers with information technology services and proprietary hardware products – specifically servicing critical infrastructure, including the energy, transportation, heavy industrial, and defense industries – had its NOI proceedings continued under the CCAA on December 1. Grant Thornton was appointed monitor. Counsel is Fasken for the company, Aird & Berlis for Silicon Valley Bank, TGF for the stalking horse purchaser and Cozen O’Connor for the monitor. By Dina Milivojevic

Digitcom Telecommunications Inc.

Digitcom Telecommunications Inc., a national leader in voice and data communications with operations in Calgary, Vancouver, Markham and Montreal, filed an NOI on October 31. TD Bank, the company's senior secured lender, is owed approximately $3.5 million. The company intends to conduct a SISP to maximize recoveries for creditors. Grant Thornton is the proposal trustee. Counsel is Cassels for the proposal trustee, Dentons for TD Bank and Bennett Jones for the company. By Dina Milivojevic

VOTI Detection Inc. (TSXV:VOTI) and VOTI Inc.

VOTI Detection Inc. (TSXV:VOTI) and VOTI Inc., a Saint-Laurent, Quebec developer of next generation x-ray security systems, each filed an NOI on October 12. VOTI Detection lists $3.4 million in liabilities to Espresso Capital Limited., while VOTI lists $10.5 million in liabilities, including approximately $477,000 to Spellman High Voltage. PwC is the proposal trustee. By Dina Milivojevic

AuVert Mining Group Inc.

AuVert Mining Group Inc., a Calgary, Alberta-based technology company which has developed a patented process to extract natural resources without the use of mercury or other toxic chemicals, was placed in receivership on October 3, on application by Polaris Financial Management Limited, the company's senior secured creditor. Between December 2018 and June 2019, Polaris loaned funds to AuVert for use in an alluvial mining operation located in Colombia. Alluvial mining is the mining of stream beds for mineral deposits. In addition, Polaris took assignments of loans made by Fernhope Limited U.K., an initial investor in AuVert. By June 2020, the company had defaulted on the Polaris loans and Polaris issued a demand on the loans. Instead of paying Polaris, on July 10, 2020, AuVert purported to transfer all of its material assets to a company owned by AuVert’s majority shareholder. Polaris and AuVert’s minority shareholder commenced an oppression action on November 13, 2020 to reverse the sale. The proceeding has not concluded. Polaris is owed in excess of $4 million. BDO was appointed receiver. Counsel is McMillan for Polaris. By Dina Milivojevic

BR Capital Inc.

BR Capital Inc. and twelve related entities each filed an NOI on September 14, 2022, listing approximately $2.7 million in liabilities. The companies, based in Calgary, Alberta, had developed various cloud-based software systems for dental/medical clinics and for teaching functions. Due to disruptions caused by the COVID-19 pandemic, demand for new licenses and revenue had declined, resulting in liquidity pressures and resulting in the decision to file the NOIs. KPMG is the proposal trustee, Gowlings WLG is counsel for the companies and Osler is counsel for the proposal trustee. By Dina Milivojevic

Genesis Integration Inc. (“Genesis”)

Genesis Integration Inc. ("Genesis"), an Edmonton, Alberta-based company in the business of designing and integrating audiovisual collaboration systems for both public sector and corporate clients, and its sole shareholder, 965591 Alberta Ltd. ("965"), a holding company, were each placed in receivership on September 14, on application by Cortland Credit Lending Corporation ("Cortland"), owed approximately $9.5 million, plus legal fees, interest and costs. The Cortland debt is guaranteed by Genesis and its wholly-owned subsidiary, Fusion Cine Sales & Rental Inc. ("Fusion”). On the same day that the Receivership Order was granted, a Reverse Vesting Order was granted approving a going concern sale to Sequent AI Exchangeco Limited, a related party, of all of the issued and outstanding shares of Genesis, including Genesis’s ownership interest in Fusion, without any effect on Fusion’s creditor obligations, including in respect of the Cortland debt and amounts it owes to certain critical suppliers. KSV was appointed receiver. Counsel is Dentons for Cortland, McMillan for the receiver and Blakes for the purchaser. By Dina Milivojevic

GetSwift Technologies Limited

GetSwift Technologies Limited, a British Columbia holding company, and Get Swift, Inc. ("GSI"), its wholly-owned Delaware subsidiary, had their Chapter 11 proceedings recognized under the CCAA on August 18. The companies are a leading provider of last mile SaaS logistics technology and services. They began to explore capitalization options in early 2021, after a period of financial difficulty caused by class action lawsuits and a regulatory proceeding involving a non-debtor Australian subsidiary. In May 2022, the company announced it had signed an LOI with Stage Equity Partners, LLC (“Stage”) to acquire substantially all of the software assets of GSI. At the last minute, the bridge financing partner for Stage pulled out of the financing deal and, as a result, the companies decided to pursue the sale while under creditor protection. Grant Thornton was appointed information officer. Counsel Moncur Mowbray LLP for the information officer and Miller Thomson for the companies. By Dina Milivojevic

iS5 Communications Inc.

iS5 Communications Inc., a Mississauga, Ontario-based company that provides customers with information technology services and proprietary hardware products – specifically servicing critical infrastructure, including the energy, transportation, heavy industrial, and defense industries – filed an NOI on August 5, listing approximately $15 million in liabilities, including $1.9 million USD to Silicon Valley Bank. The company plans to undertake a stalking horse sale process and is working toward a stalking horse agreement during the NOI period. Grant Thornton is the proposal trustee. Counsel is Fasken for the company, Aird & Berlis for Silicon Valley Bank, TGF for the stalking horse purchaser, and Cozen O’Connor for the proposal trustee. By Dina Milivojevic