IronNet, a McLean, Virginia cybersecurity firm, is in the midst of financial trouble, according to a recent filing.
In the document filed with the SEC, the company said that it furloughed “almost all” of its employees and curtailed business operations. The filing states that IronNet has substantial doubt about its ability to continue, and unless additional funds become available, the company may need to file for bankruptcy or liquidation, Technical.ly reports.
In 2021, the company went public via a SPAC merger with LGL Systems. The company has now been delisted from the New York Stock Exchange. Last year, a lawsuit was filed claiming that IronNet misled investors and made false promises about government contracts and revenue dollars.
LGL shareholders voted to approve the merger in an August 2021 vote. At the time, the SPAC said 93% of its shares were redeemed in connection with the business combination.
The merged company received gross proceeds of approximately $136.7 million, which included $125 million from a PIPE and approximately $11.7 million from the trust account after deducting redemptions.
Announced in March 2021, the deal originally called for approximately $267 million in net proceeds. Read more.
