Edgio Inc. has introduced strategic financial restructuring to aid sales and strengthen operations.
Takeaway Points
- Edgio Inc. introduces strategic financial restructuring to aid sales and strengthen operations.
- The company is targeting the sale process to be completed in approximately 80 days, if not sooner.
- On Aug 28, 2024, Edgio, Inc. Receives Expected Notice from NASDAQ.
What did Edgio Inc introduce?
Edgio, Inc., and certain of its affiliates said on Monday that it has voluntarily filed for chapter 11 relief (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the District of Delaware (the “Court”) to effectuate one or more sale transactions that should allow for the continued operation of the company’s business under new ownership.
Edgio said it entered this process with the support of its primary lender, Lynrock Lake Master Fund LP (“Lynrock”), to aid a smooth and efficient completion of the Chapter 11 cases. To anchor the sale process, Edgio has entered into a stalking horse asset purchase agreement with Lynrock, which has agreed to acquire assets of the company through a credit bid in the amount of $110 million of the existing secured debt held by Lynrock.
Todd Hinders, Chief Executive Officer, Edgio, said, “We are confident the flexibility gained through this process will enable the continued delivery of video streaming and web security solutions to our over 935 global customers who rely on us daily.”
The Company is targeting the sale process to be completed in approximately 80 days, if not sooner and has also entered into an agreement to receive approximately $15.6 million in principal amount of funded debtor-in-possession (“DIP”) financing from Lynrock.
Edgio, Inc. Receives Expected Notice from NASDAQ
On Aug. 28, 2024, Edgio, Inc., said that it received an expected notice (the “Notice”) on Aug 21, 2024, from The Nasdaq Stock Market LLC (“Nasdaq”) stating that the company is not in compliance with the requirements for continued listing under Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) because the Company has not yet filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (the “Q2 Quarterly Report”) with the Securities and Exchange Commission (the “SEC”). The notice has no immediate effect on the listing or trading of the company’s common stock on the Nasdaq Capital Market.
According to the report, the notice states that the company must update its previously submitted compliance action plan to regain compliance with the listing rule, and if Nasdaq accepts the company’s plan to regain compliance, then Nasdaq may grant the company up to 180 calendar days from the prescribed due date of the annual report, or until September 30, 2024, to file the annual report, Q1 quarterly report, and the Q2 quarterly report to regain compliance.
About Edgio, Inc.
Edgio (NASDAQ: EGIO) helps companies deliver online experiences and content faster, safer, and with more control. Our developer-friendly, globally scaled edge network, combined with our fully integrated application and media solutions, provide a single platform for the delivery of high-performing, secure web properties and streaming content. Through this fully integrated platform and end-to-end edge services, companies can deliver content quicker and more securely, thus boosting overall revenue and business value.
