Azzimov

Azzimov, a Montreal, Quebec-based start-up that delivers a virtual shopping mall solution leveraging machine learning, along with related company Azzimov Mobile, filed for protection under the CCAA on December 18, listing approximately $14.0MM in liabilities. While the companies' products are still at the development stage, they have managed to attract a growing number of retailers. Nevertheless, given the early stage of its business, the companies have never been profitable and have suffered recurring operating losses, which to date have been funded by ACG through a $4.0MM secured credit facility. ACG recently informed the companies that it could not continue to fund the losses, and the companies' shareholders have shown no appetite to inject fresh capital into the business. As a result, the companies are currently experiencing serious liquidity problems and cannot meet obligations as they become due. An NOI was filed on November 23, however the companies need the flexibility offered by the CCAA in order to proceed with the anticipated restructuring of the business. PwC was appointed monitor. Counsel is Norton Rose Fulbright for the companies, Kugler Kandestin for ACG and BLG for the monitor.