The failure of SVB Financial Group dealt another blow to Canadian advertising-tech firm AcuityAds Holdings Inc., which revealed that almost all of its cash is held at the now-insolvent bank.
(Bloomberg) — The failure of SVB Financial Group dealt another blow to Canadian advertising-tech firm AcuityAds Holdings Inc., which revealed that almost all of its cash is held at the now-insolvent bank.
Toronto-based AcuityAds has $55 million in deposits at SVB and just $4.8 million at other banks, according to a statement.
The company, which sells digital-advertising technology, listed on Nasdaq in 2021 after enjoying a burst of investor enthusiasm, during which its stock market value briefly soared to more than $1.3 billion. It has since fallen more than 90%, as the company’s revenue growth stalled and higher interest rates caused a revaluation of small-cap technology firms.
The amount tied up with SVB is equal to 65% of AcuityAds’ current market value of $84 million.
The company requested a trading halt Friday “as a result of the unfolding situation with Silicon Valley Bank,” with its shares down 14% in Toronto. Trading was stopped around 2 p.m. Toronto time, but the company didn’t disclose the information until after the market closed.
US regulators took possession of SVB on Friday amid a run on deposits. With an insurance limit of $250,000 on bank deposits, it’s unclear how much AcuityAds will be able to recover, and when. The Federal Deposit Insurance Corp. is now looking buyers for SVB’s assets to return as much money as possible to clients.
AcuityAds didn’t immediately respond to a request for comment on Saturday.
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