Swarmio Media has announced that it is seeking creditor protection.
The Halifax-headquartered gaming tech firm has filed an application for creditor protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA). Swarmio noted that this decision follows “careful consideration of all available alternatives” and consultation with financial and legal advisors.
Per the filing, as of June 10, Swarmio had total liabilities of nearly $10.3 million.
Through these CCAA proceedings, Swarmio said it hopes to conduct a sale and investment solicitation process in the hopes of addressing its sizable liquidity issues, stabilizing its operations, and continuing on as a going concern.
Founded in 2015, Swarmio, formerly known as Ubique Networks, develops internet infrastructure and software for the gaming and esports ecosystem. The firm’s solutions include proprietary, patent-pending smart edge computing tech, and a gamer engagement and monetization platform. Swarmio’s management is based in the Greater Toronto Area, while most of its other employees are located and Halifax.
The firm’s solutions include proprietary, patent-pending smart edge computing tech, and a gamer engagement and monetization platform. Swarmio has a presence in the Greater Toronto Area, where the firm’s management is based, and Halifax, where most of its other employees are located.
Swarmio offers a platform called Ember that helps telecom firms monetize their gaming customers. The company facilitates managed Discord chats, servers, events, streams, tournaments, challenges, and rewards, among other things. To date, Swarmio claims several telecom firms have launched Ember as an add-on for subscribers.
Swarmio first began trading on the Canadian Securities Exchange (CSE) under the symbol ‘SWRM’ in late 2021, following a reverse takeover of a new holding company it created. This holding company secured $5 million via private placement to support Swarmio’s expansion into new geographic markets.
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Since then, however, the company has faced difficulties. Its stock price has fallen precipitously—from $0.56 on the CSE when it first went public, to a fraction of $0.01 at the time of publication.
Earlier this year, Swarmio swapped CFOs, bringing on Jonathan Visva in a full-time capacity to replace Kyle Appleby, who was working on a part-time basis. The company claimed this move was in anticipation of a “high-growth phase” following the global deployment of its Ember platform. In March, Swarmio received $1 million in secured debt from an undisclosed existing shareholder.
The filing indicates that Swarmio has been struggling. Per the document, by the end of 2022, Swarmio had assets with a book value of approximately $1.2 million. As of June 10, 2023, Swarmio had total liabilities of nearly $10.3 million. According to the filing, Swarmio has 22 full-time employees and has fallen more than $1 million behind on its payroll obligations.
Feature image courtesy Pexels. Photo by Yan Krukau.