Neil Morley and Howard Smith from Interpath Advisory were appointed joint administrators to Cervest Limited on 20 June 2023.
Founded in 2015, Cervest Limited is an AI-powered climate intelligence (CI) platform which provides customers with detailed analysis on the long-term environmental risks of physical assets, portfolios and spatial areas by using climate forecast models.
The business had raised over $40m of investment through a number of funding rounds to develop and bring its ‘EarthScan’ platform to market. However, its latest funding round encountered significant challenges. Given the cash burn in the business and the funding requirements to operate the company and service existing contracts, the directors sought to explore options, including seeking alternative investment, as well as a potential sale of the business. Unfortunately, a solvent solution could not be found, and so the directors made the decision to seek the appointment of administrators.
Following the appointment of the joint administrators, the business ceased to trade and all 71 employees were made redundant. The administrators are supporting those impacted, including providing them with the information required to make claims for monies owed to the Redundancy Payments Service.
The administrators sought to pursue a sale and realisation of the company’s assets, and on 25 June 2023, completed a sale of certain intangible assets to Mitiga Solutions SL, with the support of the secured creditor, Lf Office, Llc. The acquisition will enable Mitiga Solutions SL to explore integrating the acquired technology into its products and services with the prospect of diversifying its existing climate intelligence offer.
Neil Morley, director at Interpath and joint administrator, said: “We are pleased to have been able to conclude this transaction which sees Mitiga acquire Cervest’s leading-edge technology and IP.”
The Joint Administrators, Neil Morley and Howard Smith of Interpath Ltd, were advised by Shoosmiths, and Mitiga Solutions SL were advised by Osborne Clarke LLP.
