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Payday: €500k in cash and €40,3M in credit bid

Infarm bankruptcy update

Infarm entered Administration back in October 2023, getting into a legal process being managed by licensed insolvency practitioners known as administrators. These lawyers are appointed to protect Infarm's interests, attempting to help the company survive or create the best outcome if liquidation becomes a feasible option.

Yet, what has happened in the past five months? Let's take a look.

Company assets acquired
On the 12th of April, the Companies House services shared an update on the case, showing that on the 29th of December 2023, May Acquisitions Limited purchased the business records, contracts, intellectual property, plant and machinery. This comprised a number of €40,8 million, and sales information.

Consideration for the sale of the business and assets of Infarm was in the form of €500,000 of cash consideration and €40,299,344 of debt consideration by way of credit bid from Triple Point Capital LLC and TriplePoint Private Venture together.

For Infarm, the sale of its business and assets to Triple Point Capital LLC and TriplePoint Private Venture consisted of receiving €500,000 in cash and €40,299,344 in debt consideration through a credit bid. Thus, instead of paying €40,3M in cash upfront, the buyer is using its debt as consideration for the purchase. The actual receipt of this amount depends on the buyer's ability to honor the debt obligation.

Despite a sum of €200,000 has been received, €300,000 (a part of the cash consideration) remains to be paid and is put on hold, although it was to be paid by the purchaser on or before 4pm on 29 February 2024 as the documents state. Meaning that Infarm hasn't fully been paid out the amount yet.

What does the delayed payment mean for Infarm?
This delay in receiving the pending consideration amount of €300,000 might impact Infarm's financial planning and liquidity as they could have spent it on other purposes in the meantime. Like paying off debts, funding operations or investing in other initiatives for instance.

New company name
A sale of the company's assets took place on 29 December 2023 to May Acquisitions Ltd. Allegedly, Infarm Technologies Limited changed its name to May Acquisitions Limited three months ago which is registered at the address; Goodwood House, Blackbrook Park Avenue, Taunton, Somerset, TA1 2PX, in the UK. Endole suggests that May Acquisitions Ltd., May Xyz Ltd and May Dnu Ltd. are all linked to Erez Galonska.

For more information:
Clem Tibber
[email protected]
Gordon Bettany
[email protected]