Optimus Ride, Inc.
Optimus Ride, Inc.
- Private equity-backed developer of autonomous vehicles and enabling technology.
- Review the asset purchase agreement to address the subsequent filing of the assignment for the benefit of creditors following the closing of the sale of assets to the buyer.
- Recovered remaining holdback of purchase price from buyer as reflected in the asset purchase agreement.
- Significant time spent negotiating with various creditors who alleged issues by the company in a failed pre-assignment SPAC transaction.
The company was founded in 2015 and focused on the development of autonomous vehicles. The company had some initial success. In early 2021, the company sought to conduct a SPAC transaction and engaged an investment banker in the process. Unfortunately, this process was not successful and in mid-2021, the company shifted its focus to raising capital or a sale of its assets and engaged a new investment banker. The company reached out to well over 100 investors/acquirers and subsequently shifted focus to an expedited sale process due to financial issues. There were over 30 potential acquirers interested and about 10 conducted deeper diligence.
There was limited interest in any capital investment or purchasing the company. After assessing the limited interest, the company located a purchaser that represented the best option to maximize value for the benefit of the creditors and other stakeholders. Negotiations with the buyer led to a sale completion date of December 31, 2021. The terms of the sale included payment of $10M in cash, and the assumption of the company’s real property lease and they hired a substantial number of employees, thereby reducing the remaining liabilities of the company.
The assignee collected all of the proceeds from the sale of the company. The assignee has spent significant time reviewing and analyzing the claims filed by a variety of creditors, including priority tax claims, general unsecured claims, convertible debt holders entitled to a multiplier based upon their investment agreements and equity claims.
The assignee continues to negotiate with two former principals regarding their claims against the company.