Urbanimmersive Announces Workforce Reduction and Review of Strategic Alternatives
SAINT-HUBERT, Quebec, April 14, 2023 (GLOBE NEWSWIRE) — Urbanimmersive Inc. (“Urbanimmersive”, the “Company”, or “UI”) (TSX VENTURE: UI) (OTCQB: UBMRF) today announces a workforce reduction and a review of its strategic alternatives available.
In the last fiscal year, the Company experienced a decline in revenues across all its divisions and regions due to the decreased number of new properties for sale entering the real estate market. So far in this fiscal year, contrary to historical seasonal trends where the Company experienced significant revenue growth at the beginning of the high season, the Company’s revenues for February and March 2023 have been relatively flat in comparison to the previous months which has negatively impacted its liquidities. As a result, as of March 31, 2023, the Company has a cash position of $376k (and liquidities of $576k while including unused lines of credit) with accounts payable of approximately $1.1M. Then, the Company will likely need to obtain additional financing in the short term to fund its ongoing operations in the ordinary course of business.
In response to these challenging market conditions, Urbanimmersive is exploring various alternatives to enhance even more its efficiency and reduce its operating costs and is also reviewing other alternatives to generate cash in the short term, such as disposal of non-core assets. Additionally, the Company is implementing a workforce reduction to streamline operations and maintain the stability of critical systems during the current real estate market slowdown. While this decisive action aims to position Urbanimmersive to be cashflow positive until the real estate market recovers, those operational changes could affect its ability to maintain market share and revenues in the future.
In the interim, Urbanimmersive contemplates to complete an additional financing of a minimum of $1.0M through a private placement of convertible debenture units with terms and conditions to be finalized. Accredited investors interested by this investment opportunity can contact the Company’s CFO for more information. Net proceed from this financing will be used to bolster the Company’s working capital during the market recovery period and secures the Company’s ability to rebound once the real estate market recovers. Key management executives and employees have also agreed to reduce their salary with a portion of their compensation being paid in shares, in order to preserve the Company’s liquidities.
Other than what has been described in this press release, the Company has not made any decisions regarding its strategic alternatives at this time, and there is no guarantee that the review of its strategic alternatives will result in any specific favorable outcome. Urbanimmersive cautions that securing additional financing may not be possible, and revenue growth and expense reduction strategies may not be successful. The Company does not plan to provide further updates on this review process unless required by applicable securities laws.
Urbanimmersive is a SaaS business management solution that provides mission-critical solutions to visual content providers serving the real estate residential, commercial, construction, and local business markets. Urbanimmersive’s platform helps customers to increase operational productivity and delivering the full potential of visual content creations through leading-edge websites builder tool, AI-backed image indexing, robust file transfer systems, and interactive visual technology solutions. The firm’s core technology is a 3D emulator powered by a visual content recognition post-production algorithm that delivers online and offline alternatives to traditional 3D engines for the creation of immersive digital environments. Learn more at urbanimmersive.com.
Caution of Forward-Looking Statements
Certain statements in this news release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management estimates or opinions change.
For more information, please contact:
President & CEO
514-394-7820 X 202
Simon Bédard, CA, CPA, CFA, MBA
Chief Financial Officer
514 394-7820 X 224
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