The Company was an edTech disruptor, specialising in creating and developing children’s educational material aimed at improving reading and writing. It used platforms such as mobile apps, printed products and digital content aimed at children aged 4 to 11. All educational content was internally developed using Hollywood-quality animation and state-of-the-art game design, with a view to making the learning experience entertaining and engaging. The Company had offices in various countries with approximately 32 employees based in the UK.
Despite having raised over £11.5m the Company was incurring losses and with the onset of Covid 19 the Company took measures to preserve its cash reserves including furloughing employees. The combination of a deteriorating cash position, a significantly delayed launch of its digital apps and delayed furlough payments meant that the Company would run out of cash. This led to an emergency funding requirement, however, the Company was not able to secure further funding from its existing or prospective shareholders which satisfied the terms of all parties.
Cork Gully was engaged to provide advice on the options available and immediately instigated an accelerated M&A process. 21 expressions of interest were received. resulting in an offer to purchase the Company’s business, certain assets and the shares in one of the Company’s subsidiaries.
Cork Gully partners were appointed Joint Administrators and successfully completed a pre-packaged administration sale which secured jobs in the UK and Europe.