Azure Dynamics (TSX:AZD), which makes electric and hybrid electric components for commercial vehicles, has filed for bankruptcy protection in the U.S. and Canada while it tries to restructure.
The decision comes after the Ontario Securities Commission rejected the company’s prospectus to raise $12 million through an offering of equity units.
The offering was expected to close by mid-March, but the securities commission rejected the prospectus on the basis that it would not be in the public interest.
“The decision to abandon the offering and commence CCAA proceedings comes after several weeks of formal and informal communications with staff of the Ontario Securities Commission,” said Azure CEO Scott Harrison.
“The board of directors strongly disagrees with any suggestion that it would not be in the public interest to issue a receipt for the prospectus for the offering,” said Cam Deacon, Azure’s board chairman.
“In our view, any determination of what is in the public interest should weigh all relevant interests, including the interest of the company in being able to access the capital markets and the interests of the company’s existing shareholders, employees, suppliers, customers and other stakeholders.”
Azure makes commercial truck drive train systems for electric and hybrid electric vehicles. The company was founded in Burnaby, but moved its corporate headquarters to Michigan in 2007. It still has an office in Burnaby, however, and is still listed on the TSX.
