Two-factor authentication (2FA) vendor GrIDsure says it is in the process of conducting a trade sale after its investor pulled the plug.
Insolvency practitioners Cork Gully informed creditors yesterday that the Huntingdon-based firm had commenced liquidation proceedings. A formal meeting of creditors will be held on 8 November.
Chief executive Daniel Mothersdale attributed the company's collapse to funding issues.
"There is a trade sale ongoing at the moment," he told ChannelWeb.
"The investors made it clear there would be no more funds coming into the company so I had to go out and look for potential buyers."
Mothersdale, who was only appointed chief executive earlier this year, hinted the trade sale would be completed in the coming days, but was tight-lipped on the identity of the buyer. According to industry sources, it is likely to involve GrIDsure's intellectual property only.
Creditors have been told they are unlikely to recover much of their money, as GrIDsure has few assets.
Founded six years ago, GrIDsure bills itself as a pioneer in pattern-based 2FA and was one of several tokenless vendors that sought to make hay out of the recent RSA security hack. It recently appointed distributor Vigil Software to help expand its UK reseller base beyond the current tally of 15.
Cork Gully was not available for comment at the time of going to press.
Joe Macri says the vendor saw 20 per cent of its UK growth come from its Cloud Solution Provider programme last year
Pure set for further acquisitions, with a focus on the south-east
Reports claim BlackBerry is in talks over a $1.5bn deal