Voxtur Analytics, a Toronto-based mortgage technology company that operates on both sides of the border, has terminated the definitive agreement to sell a majority stake in Blue Water Financial Technologies to University Bancorp.
The deal was first announced last July 26, and some of the proceeds were to be used to pay off debt owed to Bank of Montreal. The announcement came shortly after Voxtur leadership averted
But the company's financial issues remain. It reported a third quarter 2024 loss of C$10.5 million (currently $7.29 million U.S.) including both continued and discontinued operations. That was an improvement from C$11.9 million one-year prior (U.S. $8.27 million).
On Jan. 14, Voxtur disclosed it was starting a review of its strategic options, including but not limited to, a recapitalization or a strategic divestiture of one or more of its assets, or even the sale of the entire company, said Jordan Ross, chief investment officer.
"We're looking to evaluate all options on the table in order to reduce our debt levels, as we've made that a corporate priority," Ross said.
Meanwhile, the sale of Blue Water had yet to close. So in order to provide clarity to the markets regarding its assets during the strategic review process, Voxtur elected to terminate the sale, Ross said.
That means the company still controls 100% of Blue Water.
A sale of Blue Water, even to University, may still be an option, "but at the moment, we just felt like we needed to provide that clarity to the market" so the review process could go forward, Ross said.
For its part, University Bancorp remains interested in the Blue Water business, although not likely at the price of the canceled deal, said Stephen Lange Ranzini, president and CEO of the Ann Arbor, Michigan-based company.
The agreement called for an upfront cash payment of U.S. $30 million, with up to $9.5 million of possible earn out bonus payments.
Voxtur has been able to manage through the last couple of years, even with
"We are optimistic about the future," he continued. "There's a bit of a point of pride to be so resilient during these macroeconomic headwinds that the industries have faced over the last couple years."
