Pluribus Technologies Corp. (TSXV:PLRB) et al., CCAA

Pluribus Technologies Corp. (TSXV:PLRB) et al., Toronto, Ontario-based companies in the business of acquiring small, profitable business-to-business technology companies in a range of verticals and industries, obtained CCAA protection on December 17.

Pluribus’ focus has been on providing and implementing a clear succession plan for these small businesses through acquisition, integration and optimization.

Pluribus has been in default under its credit agreement with National Bank, its senior secured creditor, since November 2023. At that time, National Bank agreed to forbear on enforcement and Pluribus commenced a strategic review process and appointed Canaccord Genuity Corp. as its financial advisor to explore strategic options. National Bank extended the forbearance period on several occasions and Pluribus was able to conclude two transactions.

In May 2024, it sold its HealthTech business and repaid National Bank just over $3 million, and then in October 2024, it sold its Digital Enablement and POWR businesses and repaid National Bank just over $9 million.

The forbearance period was not extended after it expired on November 29, such that the remaining indebtedness to National Bank (at the time approximately $10.3 million and US$0.9 million) became immediately payable. With no access to its revolving facility or any other available financing, Pluribus was facing a looming liquidity crisis, with cash resources forecast to be depleted in December.

The purpose of the CCAA proceedings is to allow Pluribus to continue its restructuring efforts and implement a SISP.

Evergreen Gap Debt GP is providing a DIP loan.

B. Riley Farber is the monitor.

Counsel is Miller Thomson for the companies, Aird & Berlis for the monitor, Cassels for the DIP lender, TGF for National Bank and Chaitons for the directors.