Shares of Microsaic Systems took a hit after Deepverge announced on Monday that it might not be able to pay its debts on time. Environmental and life-science artificial intelligence company, Deepverge, had its shares suspended for the time being as the company faces financial difficulties.
Despite having received offers for its Labskin and Modern Water businesses, Deepverge states it is unlikely that these offers will be successful in a timely manner. Deepverge also anticipates it will not have access to sufficient funds to continue trading and repaying creditors and has decided to sell its business units. This process will entail the sale, administration, or closure of all its subsidiaries.
As of May 31, Deepverge owes Microsaic Systems around 1.35 million pounds ($1.7 million) in overdue trade receivables. Microsaic Systems states that it expects to have to raise further working capital in the third quarter, though it continues to meet its obligations as they fall due.
Though the speed of revenue generation remains uncertain, Microsaic Systems is cautiously optimistic about its growth plans and sales pipeline prospects.
A Dire Financial Outlook
Deepverge suspends its shares as it faces an uncertain financial future after stating that it may not be able to pay its debts on time. The AI company has indicated it is unlikely that indicative offers made for its two businesses will reach a successful conclusion in a timely manner. Deepverge anticipates that it will not have access to sufficient funds to continue trading and repaying creditors and has opted to sell one or more business units.
Microsaic Systems, owed around 1.35 million pounds ($1.7 million) of overdue trade receivables by Deepverge, says that it expects to have to raise further working capital in Q3. Despite a slower start to the year, Microsaic remains cautiously optimistic, though the speed of revenue generation is uncertain.