Calgary IT services firm Ignite Alliance seeks time to complete sale to MNP

Ignite Alliance Corp., a Calgary-based information technology services provider operating as Ignite Technology, commenced NOI proceedings under the Bankruptcy and Insolvency Act on February 20, 2026. The company, which reports liabilities of approximately $11.5 million, intends to seek Court approval to sell its business to MNP Digital.

The company traces its roots to a Calgary startup founded in June 2011 that initially focused on designing and implementing video conferencing technology in corporate boardrooms. Ignite later expanded its capabilities through the acquisition of Northern Backup Incorporated, an IT managed services provider, which enabled the development of healthcare-focused technology solutions and a subscription-based managed services division.

The company currently employs 51 full-time staff and operates from leased premises in Calgary and Toronto, with additional remote employees across Canada and a small US subsidiary supporting Canadian customers with cross-border operations.

Ignite’s financial difficulties stem largely from an aggressive growth strategy pursued over the past several years. Management invested heavily beginning in 2021 in proprietary software development for retail and healthcare technology offerings while also expanding its workforce to support those initiatives. Although these investments drove revenue growth from approximately $10.5 million in 2020 to $26.7 million in 2024, the expansion significantly increased operating costs and losses, which rose to about $1.4 million annually and left the company with negative retained earnings of approximately $6.1 million by the end of 2025.

The company’s liquidity pressures were further compounded by tax arrears owed to Canada Revenue Agency, which reached roughly $2.9 million including interest and penalties.

Ignite also reported secured obligations to several technology distributors, including approximately $3.27 million owed to Ingram Micro and about $1.1 million to TD Synnex, along with indebtedness to its primary lender ATB Financial of approximately $464,820 under a revolving operating facility.

The NOI proceedings are intended to provide a stabilized environment for the company to negotiate and complete a proposed asset sale to MNP Digital Inc. following the execution of a binding term sheet between the parties on February 13, 2026. Under that arrangement, Ignite has agreed to pursue the restructuring process and seek Court approval of the transaction once a definitive asset purchase agreement is finalized. Management says the contemplated transaction would preserve the business as a going concern and provide employment offers to substantially all of the company’s workforce.

KSV is the proposal trustee. Counsel includes Burnet, Duckworth & Palmer for Ignite, MLT Aikins for the proposal trustee, Dentons for MNP, Bennett Jones for Ingram Micro, and Miller Thomson for ATB Financial.