Fantasy Aces goes into liquidation
DFS operator declares bankruptcy after failure to raise new capital or complete a sale
DFS operator FantasyAces has declared bankruptcy and announced the termination of its shares on the TSX Ventures stock exchange.
The operator said its ability to continue had always been dependent on raising new capital, which it had been unable to do.
The firm said in a statement on Wednesday: “The Company had been actively seeking from multiple sources to raise additional capital through debt, equity and other capital raising efforts, while also considering many strategic alternatives, since its merger into a public enterprise in 2015.
“The Company was unsuccessful in raising such additional capital or completing a strategic transaction.”
“Accordingly, after multiple reviews of the various alternatives available to the Company, the remaining director concluded that voluntarily entering the Chapter 7 [bankruptcy] process is the best available option to the Company and its stakeholders.”
The papers were filed yesterday in the US Bankruptcy Court in California.
The operator had made a final effort to save itself last week, announcing the sale of its assets to FantasyDraft on Thursday, but Draft said yesterday the deal had fallen through after it identified “issues” during its due diligence process.
Players have been trying to withdraw funds from Fantasy Aces for weeks, but it appears they may not be getting their money back.
Despite being subject to regulations which required Aces to segregate player funds, its bankruptcy filings showed a total of just $3,000 in accounts called Players Account.
The filings also show Aces has liability of $3m and assets of around $1.8m.
More than $1.3m is owed to players.