Enterprise software firm Huddle urgently needs to find at least $US5 million (£4 million) or a buyer to keep its bank happy, according to a Companies House filing that was first spotted by Computer Weekly.
Huddle has until April 30 to explain to its bank how it will raise at least $US5 million in equity. It needs the money to ensure it can meet its financial obligations over the next 12 months.
“If the covenant is not met, the group would not have adequate cash resources to continue to pay liabilities as they fall due for at least the next 12 months,” the filing reads.
“Management is confident they will meet the covenant requirements, however this represents a material uncertainty which may significantly cast doubt about the company’s ability to continue as a going concern.”
Huddle was cofounded in London in 2006 by Andy McLoughlin and Alastair Mitchell, who was also the company’s CEO. The company has raised $US89.2 million (£70 million) for its content collaboration platform. It was called out by UK government agency Tech City UK as one of the UK’s most promising startups in 2013 when it was selected to be part of its Future Fifty cohort.
Huddle VP Tim Deluca Smith said there was no need to be concerned about the impending deadline presented in the filing.
“As we are coming to the end of a funding cycle, our annual [Companies House] filing requires us to disclose how we are expecting to bridge our funding requirements going forward,” he reportedly told Computer Weekly. “This is very normal. We are a venture capital (VC)-backed company and, like any other, we require funding until either we break even or the business is acquired.”
Mitchell stepped down as CEO in January 2015 and made way for Morten Brøgger, a veteran tech exec whose past roles included CEO of Mach, which he helped sell to Syniverse for $US715 million (£557 million) in 2012.
Huddle did not immediately respond to Business Insider’s request for comment.