The future of Bidstack Group Plc is hanging by a thread after it appointed restructuring firm Alvarez & Marsal Europe LLP.
Bidstack, an in-game advertising platform, said cash reserves are set to run out at the end of March.
It has taken the decision to initiate a strategic review after the collapse of a loan agreement, agreed in October 2023, with strategic investor Irdeto.
In a statement to the London Stock Exchange, Bidstack said it had drawn down one tranche of funding – £600,000, on the date of the agreement – but had not drawn any further tranches due to the failure of Irdeto to secure necessary disclosures and documentation from its parent company Multichoice.
“Whilst the company is keen to continue to work with Irdeto as previously announced, the board of the company feels that it must also consider other funding alternatives and has decided to initiate a strategic review,” continued the statement.
“The board has appointed Alvarez & Marsal Europe LLP, a restructuring adviser who, alongside the company and its other advisers, will look at all options for the future of the group which may or may not involve a sale of the company’s assets.”
Just before Christmas, Bidstack settled its legal dispute with partner Azerion – with the latter paying Bidstack €3m – and a new commercial partnership to commence in 2024.
“Despite the recent receipt of the cash settlement reached with Azerion the Group’s working capital position remains tight and will need further working capital in the short term,” said Bidstack this morning.
At 31st January 2024 the group’s cash balance was approximately £1.4 million which gives it sufficient cash resources until the end of March 2024.
In September founder and CEO James Draper set up a private company “to preserve value for shareholders” and sell Bidstack’s platform into US sports leagues.