Stradigi AI’s difficulties mean that the intellectual property developed by the Montreal company, funded largely with public funds, is in danger of leaving Quebec.
“The sad thing is someone else is going to take away the multi-million dollar fortune for just under a million dollars,” he lamented yesterday protocol a source familiar with the matter, on condition of anonymity.
Despite intense efforts, the company was still generating “minimal revenue,” the person added.
lack of funds
Stradigi AI laid off almost all of its employees on Monday, that is, 50 people. The company specializing in artificial intelligence simply no longer had the necessary funds to continue its activities.
Investissement Québec (IQ) and Fonds de solidarité FTQ each invested $13.2 million in Stradigi in a $53 million funding round completed in 2019.
IQ, the fund FTQ and other shareholders said they were dissatisfied with the work of Stadigi AI management and have refused to reinvest funds in the company, three sources said protocol.
According to our information, a few months ago, Stradigi received a $1 million loan from two foreign companies, one based in the Bahamas and the other in Florida. The loan is secured by the company’s assets, mainly its intellectual property.
Last week, the two lenders offered to buy out Stradigi AI and promised to put $4 million back into it, which would have allowed it to keep its headquarters and jobs in Quebec.
They then withdrew their offer due to disagreements among the company’s shareholders.
Stradigi’s other shareholders include the company’s co-founders Basil Bouraropoulos and Curtis Gavura, and Brendan Holt Dunn, descendant of the late Montreal magnate Herbert Samuel Holt.
Barring a reversal, all indications are that Stradigi AI will need to protect itself from its creditors and undergo a legal reorganization.
In such proceedings, the secured creditors usually have the best chance of getting hold of the insolvent company.
Mr. Bouraropoulos, who is Stradigi’s CEO, yesterday declined the interview request of the protocol.
“Basil is working very hard to save the company,” said his spokesman Yanik Deschênes.
– With Francis Halin