Urbanimmersive third-quarter revenues down 6%

“During the most recent quarter, we faced significant challenges and are proud of the progress made so far,” said Ghislain Lemire, president and CEO of Urbanimmersive. “Real estate market conditions have remained particularly difficult and we also had to manage the loss of clientele in some of our photography agencies due to breach of non-competition and non-solicitation agreements in place by some of our former managers. However, the financial measures taken recently, such as the optimization of our operations in connection with the integration of our recently acquired businesses, including a significant reduction in our workforce, the $750k financing completed last June and the remodeling of our long-term debts should together enable the company to free up nearly $4.0m in cash over the next 12 months and thus rebalance our working capital and strengthen our financial position while remaining resolutely focused on the growth of our business. At the same time, we continued to develop several growth projects that we expect to launch in the upcoming months.”

In June 2023, the company completed a private placement of 11,538,461 units at a price of $0.065 for net proceeds of $750,000. Each unit consists of one common share of the company and a warrant entitling the holder to purchase one additional common share of the company at a price of $0.10 per share until June 27, 2026.

In June 2023, the company signed an amendment to its banking agreement with its financial institution to restructure its two main term loans (balance of $2.6 million) and thus was able to obtain 1) a capital repayment holiday until February 2024 inclusively and 2) that a portion (5.50%) of its interest normally payable monthly be instead capitalized to the loans until their maturity in June 2024.