Cybersecurity Firm Cyren To Pursue Liquidation
The email security vendor had already cut most of its staff earlier this month, and is now confirming that it will cease operations.
Cyren has officially decided to cease operations and will pursue liquidation of its assets, the company said Wednesday.
Earlier this month, the publicly traded company said it was cutting “substantially all” of its staff with layoffs of 121 employees and would explore an asset sale or liquidation.
The email security and threat detection vendor cited “its inability to secure additional sources of liquidity or consummate a going concern sale” for the liquidation proceedings.
Cyren’s board has now “approved a plan to cease operations and commence insolvency proceedings for the company and to liquidate its wholly-owned subsidiaries,” the company said in a news release.
Shares in the McLean, Va.-based company will cease trading as soon as Nasdaq decides to have that happen, Cyren said.
Cyren’s CEO is Brett Jackson, a cybersecurity industry veteran who joined the company as chief executive in 2019. Its revenue rose 4 percent year-over-year, to $5.8 million, during the third quarter, ended Sept. 30, 2022. The company had sold off its secure email gateway business in August 2022.
Earlier this month, Cyren had said that “existing cash and projected cash flows from operations will not be sufficient to meet the company‘s working capital needs in the near term.”
The vendor blamed “current market conditions and associated challenges with raising additional capital” for the company’s situation at the time.