Factom Inc. has entered financial difficulties after an appeal for additional funding fell on deaf ears, according to its main investor.
Although Factom Inc.'s Twitter page had fallen silent in the middle of January, alarm bells started ringing in March after the company told investors it would enter liquidation by the end of the month unless it received additional funding.
FastForward, which had the largest stake in Factom Inc., said it was prepared to renegotiate its $6 million simple agreement for future equity to try and attract outside investment.
Following a board meeting on March 31, Factom finally told investors it would consider beginning the process of liquidation.
Factom Inc. COO Jay Smith denied FastForward's claims that the company had entered receivership.
The closure of Factom Inc. will not have any impact on the running of the Factom Protocol, said Factom Inc. chairman David Johnston.
FastForward, which is listed on the London Stock Exchange and has invested in a diverse range of tech startups, entered into a $6 million SAFE with Factom Inc. in 2018.
In its near-six-year history, Factom raised more than $18 million from investors.
In an announcement, FastForward director Ed McDermott admitted the company was not altogether certain how Factom Inc. ended in such dire financial straits.
"As we go through the Receivership process and understand more of the events that led to this position our position as investors in Factom is expressly reserved."
Factom Inc. 'Faces Liquidation' After Investors Refuse Request for More Funding
Published on Apr 2, 2020
by Coindesk | Published on Coinage
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