It’s back to the drawing board for Ottawa-based International Datacasting after its shareholders rejected the proposed sale of many of its assets to San Diego-based Pico Digital Friday.
“With this vote, the shareholders have indicated their belief in the underlying value of IDC,” company chairman Chris Van Staveren said in a statement. “We will respect the shareholders’ decision, and in the coming weeks will create a new business plan for IDC.”
Mr. Van Staveren said part of the plan will include raising new financing for the company, with one option being equity or debt financing from existing shareholders.
The termination of the deal means the $1 million in bridge financing IDC received from Pico Digital, plus all accrued interest, must now be repaid. The company said management and its board will work to ensure the money is available, while “reviewing possibilities for stabilizing IDC and ensuring it is able to continue as a going concern.”
The company said the composition of its board of directors will also be reviewed “to ensure that management has the appropriate support it requires to meet the significant challenges that IDC faces and that shareholders have appropriate representation.”
IDC announced in February it was exploring acquisition possibilities, and the deal with Pico Digital was announced in April.
The board had recommended shareholders accept the deal, with CEO Doug Lowther calling it “good news” for IDC customers. The firm, which distributes digital content for broadcasters, employs about 65 people at its Kanata headquarters.