iLearningEngines, Inc., a provider of prepackaged software services, has filed for Chapter 11 bankruptcy protection and is set to be delisted from the Nasdaq Capital Market. The company, formerly known as Arrowroot Acquisition Corp., submitted voluntary petitions for itself and its affiliated entities on December 27, 2024, with the United States Bankruptcy Court for the District of Delaware.
The filings, which include iLearningEngines Holdings, Inc., and iLearningEngines FZ-LLC, allow the company to continue operating while it restructures under bankruptcy laws. The court granted several "first day" motions on December 30, 2024, to ensure ongoing business operations, including authorizing payments for certain pre-petition employee obligations.
On December 23, 2024, Nasdaq notified iLearningEngines that its securities would be delisted due to bankruptcy filings. The company did not appeal this decision, and trading of its common stock and warrants was suspended as of January 2, 2025. It is anticipated that the company's securities will now be quoted on the OTC Pink Market under the symbols "AILEQ" for common stock and "AILEWQ" for warrants.
The company plans to file additional motions to maintain business continuity and minimize the impact of the bankruptcy proceedings on its stakeholders. These proceedings are subject to public scrutiny, with documents available for a fee on the Bankruptcy Court's website or for inspection at the court's clerk office in Wilmington, Delaware.
iLearningEngines warns that trading its securities during the Chapter 11 process is highly speculative and poses substantial risks. The outcome of the bankruptcy cases could lead to significant or complete loss for investors.
This news is based on a press release statement and the information provided in the company's Form 8-K filed with the SEC. The forward-looking statements in the filing carry risks and uncertainties, and actual results may differ from those projected. The company does not assume any obligation to update these statements.
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