Swarmio Seeks Creditor Protection
Summary
With its head office in the Toronto area, it is now involved in proceedings before the Ontario Superior Court of Justice.After careful consideration of all available alternatives and following thorough consultation with legal and financial advisors, the directors of the Swarmio Group determined that it is in the best interests of the Swarmio Group and all of its stakeholders to seek creditor protection under the CCAA, said the company in a regulatory filing.Swarmio is the second publicly listed, innovation-driven company with Nova Scotian links to file for bankruptcy protection this year. Dartmouth drug discovery company IMV, which is listed on the Nasdaq and the Toronto Stock Exchange, sought creditor protection in Canada and the U.S. in May.Swarmios platform was designed to compensate for latency in multi-player online games. Swarmios solution was to develop a network of remote servers, so each player is accessing servers the same distance away.Founder and CEO Vijai Karthigesu previously said that he hoped to build up a development centre in Cape Breton, as well as have operations in Halifax. In November 2021, the company listed on the CSE, an alternative stock market, raising $6.3 million and giving the company a market capitalization of about $55 million at the time.Swarmios shares closed on their first day of trading at 56 cents, but have now fallen to just half a cent, giving it a market capitalization of about $550,000.Innovacorp (now Invest Nova Scotia) invested $3.5 million in the company, according to someone familiar with the investment. Filings from the federal government show that Swarmio also received $900,000 in financing (mostly loans) from the Atlantic Canada Opportunities Agency and $1.3 million in grants from the National Research Councils IRAP program.