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

The cost of not communicating: How Whispir’s tailored messaging tech lifts engagement
Partner Content
While it is common for businesses to haggle with suppliers over small price differences...
Advertisement

Related Stories

Blackstone completes $8.9b takeover of Crown, its “largest investment to date in Asia”

Blackstone completes $8.9b takeover of Crown, its “largest investment to date in Asia”

The long-awaited and heavily-scrutinised takeover of casino and hot...

Administrators proffer alternative to liquidation for Probuild parent

Administrators proffer alternative to liquidation for Probuild parent

A Deed of Company Arrangement (DOCA) is the preferred way forward f...

Twiggy Forrest-backed intercontinental solar power project deemed ‘investment ready’

Twiggy Forrest-backed intercontinental solar power project deemed ‘investment ready’

The Australia-Asia PowerLink (AAPowerLink) project backed by the li...

Jetstar CEO to resign as Qantas Group recovery reaches cruising altitude

Jetstar CEO to resign as Qantas Group recovery reaches cruising altitude

Jetstar CEO Gareth Evans has today announced he will step down from...