Axios Mobile Assets Corp. (TSX-V: AXA) disclosed today that as a result of its inability to raise additional financing that it is ceasing its logistics operations effective immediately and has laid off of the majority of its employees.
Axios Mobile Assets is in default of its obligations with its secured lenders and has been advised that it will be receiving demand notices in respect of such outstanding debt.
Axios said its officers and board members are reviewing alternatives available and will provide further updates as information becomes available.
Relay Ventures is Axios’ largest shareholder controlling 15.6% of outstanding shares. Relay Ventures through Relay Ventures Fund III L.P. and Relay Ventures Parallel Fund III L.P. led a $14 million private placement with $6 million investment in December 2015.
John Albright, Managing Partner of Relay Ventures, resigned as a director of the company on January 10, 2017. Michael Cooke resigned as the company’s CFO on January 30, 2017.
Export Development Canada (EDC) is Axios’ first rank secured debtholder, holding $5 million secured loans. On July 22, 2016, Axios raised additional $3 million in secured debenture from one undisclosed investor. The debenture is subordinate to EDC loans.
As of September 30, 2016, Axios reported $14.6 million in total liabilities, $7.4 million of which was total current liabilities. It reported $22.9 million in total assets: $5.6 million in total current assets, $17.3 million in total non-current assets (property and equipment (P&E), intangible assets and goodwill). $9 million of $11.6 million of net carrying amount in P&E was recorded for pallet pool.
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