Cloud DX Inc., a company based in Kitchener, Ontario, recently made an announcement regarding a restructuring process and the resignation of two directors. The company’s subsidiary, Cloud Diagnostics Canada ULC, has filed a Notice of Intention to Make a Proposal (NOI) under the Bankruptcy and Insolvency Act (Canada). This decision was made by the Board of Directors after careful consideration of various factors such as the company’s cash position, financing options, scheduled payments to suppliers, and forecasted revenue and expenses.
It is important to note that while the company has filed an NOI, it is not bankrupt, and all services to customers will continue as usual. The purpose of this filing is to create a stabilized environment for the company to pursue a restructuring of its affairs. The filing of the NOI also imposes an automatic stay of proceedings that protects the company and its assets from claims and enforcement proceedings by creditors.
The company aims to run an orderly and flexible sale, investment, and solicitation process with the goal of identifying interested parties that may wish to acquire or invest in the company’s business or assets. The Board of Directors has appointed Crowe MacKay LLP as the trustee under the NOI to oversee this process.
As part of the restructuring process, directors Brad Miller and Konstantin Othmer have resigned from the Board of Directors of Cloud DX. The remaining five directors continue to serve on the board. Due to the filing of the NOI, the TSX Venture Exchange is expected to suspend the trading of Cloud DX’s common shares until the company is in compliance with the exchange’s listing requirements.
Cloud DX is known for its Connected Health™ remote patient monitoring platform, which is used by healthcare enterprises and care teams across North America. The platform helps manage chronic diseases, enable aging in place, and deliver post-surgical care in the home. The company has received several awards and recognitions for its innovative healthcare solutions.
In conclusion, Cloud DX’s decision to undergo a restructuring process and the resignation of two directors are part of the company’s efforts to address its financial situation and explore potential opportunities for growth and stability. Despite the changes, the company remains committed to providing quality services to its customers and stakeholders.
