Relay Ventures backed Axios petitioned into bankruptcy

Export Development Canada (EDC) filed on February 23rd, 2017 and court granted on February 24th, 2017 the application of petitioning Axios Mobile Assets Corp. into bankruptcy under the Bankruptcy & Insolvency Act (BIA).

A. Farber & Partners Inc. has been appointed receiver over all of the assets, undertakings and properties of Axios Mobile Assets Corp., Axios Mobile Assets, Inc. and Axios Logistics Solutions Inc.

Axios is indebted to EDC, Axios’ first rank secured creditor, in the aggregate amount of $5.04 million.

Dennis Bausch and James Taylor have resigned as directors and Richard MacDonald remains as the sole director of Axios for the time being.

Following EDC loan demand letter on February 10, 2017, Axios announced the shutdown of operations and layoff of all employees with MacDonald remaining as the only employee.

Axios had a net loss of approximately $10.84 million for the nine months period ended September 30, 2016. Axios had net losses (before taxes) of $3.1 million and $9.1 million for the fiscal year 2014 and 2015, respectively.

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. invested $6 million, leading a $14 million private placement in December 2015.

John Albright, Managing Partner of Relay Ventures, resigned as a director of Axios on January 10, 2017.

photo credit: Axios Mobile Assets