Tintri is exploring the possibility of a takeover as its financial situation is “likely” to kill it off.
The storage vendor has suffered since it listed on the NASDAQ market last year. It announced a wave of job cuts in September. Things have not got much better, and Tintri is in breach of covenants relating to its credit facilities with lenders. Tintri is currently $15.4 million in debt with the banks and owes $50 million to TriplePoint Capital.
Tintri said it is not in a position to repay the money it owes if its lenders declare an event of default.
In a statement to shareholders Tintri said: “Based on the company’s current cash projections, and regardless of whether its lenders were to choose to accelerate the repayment of the company’s indebtedness under its credit facilities, the company likely does not have sufficient liquidity to continue its operations beyond 30 June 2018.
“The company continues to evaluate its strategic options, including a sale of the company.
“Even if the company is able to secure a strategic transaction, there is a significant possibility that the company may file for bankruptcy protection, which could result in a complete loss of shareholders’ investment.”
The vendor’s revenue in Q1 was $22 million, alongside a loss of $1.14 per share.
Tintri could not publish the usual depth of information seen in quarterly results because some people involved in preparing the report have left the organisation, it said.
The vendor’s share price has been at under $1 since 22 May. If a company’s share price has been under this value for 30 consecutive days the shares can be de-listed from the NASDAQ market.
