Phantom Fiber Corporation, the mobile solutions developer, has discontinued operations after failing to generate the necessary cash to repay an investor. It leaves behind a number of partners including Mahjong Time, a minority-owned subsidiary of CryptoLogic Ltd., and Scientific Games Corporation.
In a filing with the United States Securities and Exchange Commission, the Toronto company said it had received a default notice from Victory Park Master Fund Ltd. with regard to a forebearance agreement the two inked on May 31, 2008.
Phantom Fiber, which was founded in 2002 by Jeffrey T. Halloran, said it was unable to generate sufficient cash from operations, or debt or equity financing, to satisfy its cash obligations. It also said it was unable to amend the terms of its agreement with Victory Park, which holds Phantom Fiber’s $2.6 million convertible note that was due on May 31.
Phantom Fiber said, therefore, that it could no longer continue as a going concern and terminated all staff on Nov. 21 with the exception of Mr. Halloran.
On its recent third-quarter results statement, the company said revenue fell 54 percent to $133,252, while operational losses grew 168 percent to $420,295.
It conceded then that: “We do not expect to generate sufficient cash from operations and will need to incur additional debt or issue equity financing. If we are unable to obtain additional third-party financing in the future and our operations do not generate sufficient cash we will be unable to continue as a going concern.”
The company, which, initially, had targeted the gaming and entertainment sectors, had inked a number of deals this calendar year with clients in the mobile payments, healthcare and logistics sectors.
Phantom Fiber follows Playwize, Fleet Street Games, Duplicate Poker, Lasseters Corporation, Chan Poker and other I-gaming brands that have gone to the wall in recent months.