Swarmio Inc. et al., CCAA

Swarmio Inc. et al. (the “Swarmio Group”), an early stage, pre-revenue technology and media company focused on the gaming sector, obtained CCAA protection on June 21. Swarmio Group’s management team is located primarily in the GTA in Ontario, while its other employees, such as developers and software engineers, operate out of leased premises in Nova Scotia. To finance operations, in November 2021, the parent company of the Swarmio Group went public, raising approximately $9 million. However, the Swarmio Group ran into a number of unanticipated challenges, including a lengthier than expected sales cycle, protracted contractual negotiations with large telecommunications companies, as well as implementation and integration of the Swarmio Group’s technology into the existing platforms of its telecommunication partners. After unsuccessfully pursuing a number of strategic alternatives, the Swarmio Group has now exhausted all of its available liquidity and has missed a number of employee payroll cycles. Grant Thornton was appointed Monitor, represented by Gowling. Miller Thomson is counsel for the Swarmio Group, Mirkwood Evans Vincent is counsel for the DIP lender and Chaitons is counsel for the OSC.

By: Dina Milivojevic