Wisp Internet Services

Wisp Internet Services, a Port Perry, Ontario-based internet service provider, filed an NOI on August 29, listing $8.5 million in liabilities. Focusing on providing high-speed internet services to thousands of residents in rural Ontario, the company attributes its financial difficulties to heavy storm damage to its tower network that caused internet service outages. This in turn led to a loss of customers and costly repairs to its tower network. The company intends to file a proposal to its creditors in the coming months which includes a restructuring of its operations. Dodick Landau was appointed proposal trustee.

Gedex Systems

Gedex Systems, a Mississauga, Ontario-based developer of airborne geological imaging technology, obtained protection under the CCAA on August 12, on application by FCMI, a secured creditor owed approximately US $10.3 million. Gedex was in the process of developing a proprietary system to discover and develop underground mineral and oil and gas resources but had not yet reached the stage of commercial profitability. Facing a working capital deficiency of over US $9.5 million and an operating deficit in excess of US $91.8 million, the company recently laid off all of its remaining employees and was canvassing the market for a potential purchaser or investor. The CCAA filing is intended to preserve the going concern value of the company while a court-supervised SISP is conducted. Zeifmans is the monitor. Counsel is Dentons for the applicant, DLA Piper for the company and Miller Thomson for the monitor.

ePRINTit.com

ePRINTit.com, a Toronto, Ontario-based technology company, filed for bankruptcy on July 18, listing $3.3 million in liabilities. The company operated a cloud-based print platform that allowed users to print or scan documents at nearby printers using any web-enabled device. Despite widespread use at schools, libraries and other public places, the company was not profitable and its stakeholders were unwilling to backstop additional losses. msi Spergel (GRIP) was appointed bankruptcy trustee

Carrot Insights

Carrot Insights, a Toronto, Ontario-based technology company that has developed the popular Carrot Rewards app, filed an NOI on July 11, listing $11.4MM in liabilities. Launched in 2015, the company grew to over one million registered users and won numerous awards and recognition, including the 2017 Canadian App of the Year by MobileSyrup. Users earned points from loyalty reward programs such as Aeroplan and Scene Points for attaining walking goals and completing surveys. Despite growing revenues to approximately $6.7MM in 2018, the company was not yet profitable and began to face funding challenges in the late summer/early fall of 2018. Attempts to raise capital were unsuccessful, and in March 2019, the company engaged EY Orenda to attempt to market its business for sale. In June 2019, to conserve cash, the company ceased operating the app and laid off all of its employees. While under creditor protection, the company will continue with the sale process, albeit in a more stabilized environment. EY is the proposal trustee. Counsel is Loopstra Nixon for the company and DLA Piper for the proposal trustee.

Argex Titanium (TSX:RSX)

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)

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

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

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

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

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.

Close Menu