Tribalscale Inc., a Toronto, Ontario-based technology company that provides customized enterprise software services to Canadian and American companies, filed an NOI on May 19, listing approximately $5.8 million in liabilities, including $2.5 million to 1924191 Ontario Inc. The company experienced early success when it started its business in 2015. However, it attributes its current financial difficulties primarily to a slowdown in receipt of new contracts in 2019 and a delay in collections from certain existing customers due to disputes, coupled with high operating and payroll expenses. The COVID-19 pandemic further reduced the spending power of the company's existing and prospective customers. Prior to filing the NOI, the company had made certain operational changes as part of a restructuring to address its liquidity challenges., including reducing its employee headcount. In addition, between the summer of 2019 and spring of 2020, the company was in discussions with various potential purchasers which culminated in a potential deal to sell its going concern business. Due to COVID-19, however, the potential purchaser opted not to close the transaction. MNP is the proposal trustee. Counsel is Weisz Fell Kour for the company, BLG for the proposal trustee, and GSNH for 192 Ontario.
ValidateIT Technologies, a Toronto Ontario-based technology company that provided market research data and deep analytic solutions for leading Canadian corporations, filed for bankruptcy on April 22, listing $1.8 million in liabilities. Ira Smith Trustee & Receiver is the bankruptcy trustee.
neXia Health Technologies (TSXV:NGH-H-X), a Markham, Ontario-based company that is engaged in the development, sale, and support of application software to customers in the healthcare industry in Canada and the US, filed an NOI on March 18. Farber is the proposal trustee.
HealthChain, a Toronto, Ontario-based company that provides software solutions that integrate with existing healthcare management systems and workflows to make outdated technologies and paper-based processes more efficient, filed an NOI on February 28, listing $1.5 million in liabilities. Dodick & Associates is the proposal trustee. Brauti Thorning is counsel to the company.
Star Navigation Systems Group (CSE: SNA), a Brampton, Ontario-based company that develops products and technologies for the aviation industry, filed an NOI on December 11, listing $3.5 million in liabilities. Since earlier this year, a group of dissident shareholders have been attempting to requisition a meeting of shareholders to replace the current board. In each instance, the requisition has been invalid. On December 11, the company's CEO and chairman of the board, Viraf Kapadia, attempted to access the company premises but his key card no longer worked. His access was then physically barred by one of the dissident shareholders. It appears as though the dissident shareholders seized the company in reliance of a meeting of shareholders held at 8 am in which the board was purportedly replaced. In addition to filing the NOI, Kapadia sought an injunction restoring the status quo for the company until the court has had a chance to assess the validity of the latest purported shareholder meeting. Farber is the proposal trustee. Norton Rose Fulbright is counsel for Kapadia.
Trakopolis IoT (TSX-V: TRAK), a Calgary, Alberta-based technology company, filed an NOI on November 7. Founded in 2006, the company delivers business intelligence to organizations that require the location, status and data on corporate assets such as equipment, devices, vehicles and people through a proprietary online platform. The NOI filing followed the company's receipt of a demand letter and notice of intention to enforce security from its secured lender, ESW Holdings, owed approximately US $3.4 million. Alvarez & Marsal is the proposal trustee. Counsel is Osler for the company, Torys for the proposal trustee and MLT Aikins for ESW Holdings.
CO2 Solutions (TSX-V: CST), a Quebec City, Quebec-based technology company, filed an NOI on September 16, listing approximately $12.2 million in liabilities. The company was developing the technology to capture and purify carbon dioxide emitted from fossil fuel power plants, pulp and paper mills and other large emitters of carbon dioxide. The company commissioned its first commercial project at a pulp mill of Resolute Forest Products in Saint-Félicien, Québec in March 2019. The project experienced significant cost overruns though, and in April 2019 the company's board announced that it was creating a special committee to review its strategic options. The strategic review will continue while the company is under creditor protection. EY is the proposal trustee.
FCV Technologies, a Vancouver, British Columbia-based information and technology company, filed for bankruptcy on September 4, listing approximately $8.9 million in liabilities. Founded in 2005 the company focused on developing smart digital products and information management tools to enable organizations to solve complex business problems and digitally transform their businesses. BDO was appointed bankruptcy trustee.
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, 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