3radical, a Bristol-based audience engagement platform, is set to be placed into administration and is seeking a pre-packaged sale of the business and its assets.
KRE Corporate Recovery Ltd has been appointed to oversee the sale, with the aim of securing a buyer who can provide the necessary resources for its continued operations.
In April 3radical was acquired by special purpose acquisition vehicle Electric Guitar PLC in a deal valued at £1.28 million. The acquisition effectively brought 3radical to the London public markets with a market capitalisation of £4.7m.
Electric Guitar has been working on a buy-and-build strategy, acquiring Mymyne Ltd in August to unlock synergies and new intellectual property for 3radical. The company has also heavily invested in its sales and marketing efforts, with more than £250,000 spent since the reverse takeover in May.
However, the decline in Electric Guitar’s share price has hindered its ability to pursue additional acquisitions or raise further capital. The board says it had been in discussions with prospective investors in Singapore, with substantial funding expected, but talks broke down in late November following another fall in the company’s stock price.
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As a result, the Electric Guitar Board concluded that 3radical could not meet its financial obligations without additional capital.
The firm, founded by British entrepreneurs David Eldridge and Mike Talbot, had built a strong reputation for its audience engagement solutions that help businesses enhance customer and employee interaction while driving referral marketing.
Launched in Southeast Asia in 2014, it expanded into the UK and Australia the following year and attracted investment from high-profile individuals including former Sage CEO Stephen Kelly and ex-Salesforce chairman for the EMEA region Steve Garnett.
Electric Guitar’s board is also exploring options regarding its financial position, with a further update on its strategy expected in the coming weeks.