QUEBEC CITY, Que. – Shares in Lyrtech Inc. (TSXV: LTK) closed down nearly 28 per cent Tuesday after the company announced it had received notice that a secured creditor intends to enforce bankruptcy.
The digital signal software company said it and an affiliate, Lyrtech RD Inc., had both received notices of the action from secured creditor Finexcorp Inc. on Friday.
Lyrtech shares were halted from trading for the announcement and closed the day down 2.5 cents, to 6.5 cents apiece.
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Earlier in the day, shares had fallen as much as 40 per cent.
The notices are subject to a 10-day grace period.
The Quebec City-based company says the notices were received without any prior notice of default or breach of covenants as was specified in the loan agreement.
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It says it is now evaluating the situation and plans to make a decision that will best preserve and protect the interests of the company and its shareholders.
Lyrtech develops and manufactures advanced digital signal processing solutions for network and wireless communications, audio and video processing and technology companies.
In its last fiscal year, the company cut its annual loss by more than half to $900,000. or 3.2 cents a share. compared with a loss of $1.9 million or 7.7 cents a year earlier.
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