Why Tritterras Is Plummeting

Shares of fintech company Triterras Inc TRIT were trading lower by more than 30% Thursday morning after confirming it informed a statutory demand for payment was made to Antanium Resources in Singapore.

What Happened: Triterras said in a regulatory filing it was informed that a statutory demand for payment from Antainium Resources (formerly known as Rhodium Resources) was filed by a creditor of Rhodium on Dec. 1.

Rhodium must respond to the demand within 21 days or a bankruptcy application could be filed by the creditor against Rhodium.

But Rhodium acknowledged its commodity trading business has been impacted by the COVID-19 pandemic and the lack of availability of trade financing funding for commodity trades involving SMEs.

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Why It's Important: Rhodium acknowledged it wants to petition Singapore's government for a moratorium order that would shield it from creditor actions.

Triterras said it "understands that Rhodium currently expects a scheme of arrangement to be acceptable to the required majority of each class of its creditors and that Rhodium will continue as a client of the Company"

What's Next: Triterras' relationship with Rhodium was vital to its launch of the Kratos platform, but it's now less dependent on Rhodium's business as the platform grows in size.

Revenue from Rhodium and its subsidiaries as a percentage of total revenue fell 15.5% for the six month period ending Aug. 31. Based on preliminary data, the company said it believes Rhodium will account for less than 10% of its total revenue for the period starting Aug. 31.

Triterras traded lower by 37% to $8.19 per share at publication time.