VersAccounts

VersAccounts, an Ottawa, Ontario-based technology company that provides a cloud-based enterprise resource planning system, filed an NOI on January 22, listing $1.2MM in liabilities. The company's customers are typically fast growing companies looking to upgrade from entry-level accounting software; they pay an average yearly fee of $10.0M (USD) to use the company's software. Over the past two years, the company's financial performance steadily declined as it failed to meet sales projections and some existing customers chose not to renew their agreements with the company. Due to the company's poor performance, it was unable to secure further funding, including additional equity investment. The principal purpose of the NOI proceeding is to create a stabilized environment to allow the company to run a sale process for the company's assets. With the assistance of the proposal trustee, the company has negotiated the terms of an asset purchase agreement with Seattle Atlantic pursuant to which it will act as the stalking horse bidder in the sale process. Farber is the proposal trustee. Counsel is DLA Piper for the company, Dentons for the proposal trustee and Osler for Seattle Atlantic.