A Colorado cybersecurity company that moved its headquarters to the state late last year is in danger of having its assets auctioned.
Root9B Holdings Inc. (Nasdaq: RTNB), which moved its corporate headquarters to Colorado Springs from Charlotte, North Carolina in December, said it received a foreclosure notice indicating that its secured creditors intend "to sell substantially all of RTNB's assets at an auction to conclude on August 31."
RTNB said in a regulatory filing that the secured creditors allege "the company had violated certain covenants set forth in the (promissory) notes and (are) demanding the immediate repayment of all outstanding amounts due under the notes. As of August 10, 2017, the aggregate value of the unpaid principal amount of the notes, together with the accrued but unpaid interest, was $10,675,805. The company does not have sufficient cash on hand to meet such demands."
Company officials said they disagree and are disappointed in the secured creditors' actions:
"As individual investors in the secured debt, we are disappointed with the foreclosure notice, however the majority prevails in the ultimate decision," said Joseph Grano, Jr., former CEO, in a statement.
Read more at the Denver Business Journal: http://bit.ly/2wytrlk