Flamingo AI may fold as fire sale falls through

Flamingo AI may fold as fire sale falls through

Chatbot developer Flamingo AI (ASX: FGO) is scraping the salt pan after negotiations collapsed to hand over operations and IP in exchange for the payment of accrued wages to employees.  

The Software as a Service (SaaS) company reached a binding terms sheet last month with Rymamay Investments to sell all its assets for a nominal consideration of just $100, with the condition the buyer assumed the responsibility of paying $200,000 worth of employee entitlements.

At the time Flamingo forecast a formal deal would be reached by 1 June, but two weeks after that the Sydney-based group has announced the parties could not agree to the terms.

"As a result the Board has determined that unless it is able to find a suitable acquirer for the Intellectual Property or business operations within the next 30 days, it is in the best interests of the shareholders that the Flamingo AI business will be discontinued effective 31 July, 2020," Flamingo AI said.

"The company will continue to explore all avenues to find a suitable acquirer for the business operations and intellectual property."

Flamingo AI expects that after accrued staff entitlements are paid it will have $1.4 million in cash at the end of this month.

Related story: Last dance for Flamingo AI with all assets to be sold

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How to conduct an effective board assessment: a step-by-step guide
Partner Content
Your directors should conduct a board assessment annually. Let's examine what a boa...
OnBoard
Advertisement

Related Stories

Lendlease teams with QuadReal for its first Australian build-to-rent project in Brisbane

Lendlease teams with QuadReal for its first Australian build-to-rent project in Brisbane

Property giant Lendlease (ASX: LLC) has joined forces with Canadian...

Mad Paws co-founder dishes out growth strategies for early stage businesses

Mad Paws co-founder dishes out growth strategies for early stage businesses

With more than 328,000 customers and two million pet care serv...

FoodByUs orders up $12m Series B led by Base Capital

FoodByUs orders up $12m Series B led by Base Capital

Sydney-based wholesale hospitality marketplace FoodByUs has to...

Rural veterinary group Apiam corrals NSW regional clinics for $11.2m

Rural veterinary group Apiam corrals NSW regional clinics for $11.2m

Rural veterinary clinic aggregator Apiam Animal Health (ASX: AHX) h...