FRAMINGHAM (04/21/2000) - In its latest filing with the U.S. Securities and Exchange Commission, Ottawa-based Corel Corp. announced it could run out of cash in 90 days if its merger with Scotts Valley, California-based Inprise/Borland Corp. doesn't go through and current financial troubles continue.
Corel recently posted a first-quarter loss of $12.4 million, and in its 10-Q quarterly financial filing of April 19, the company said it expected to post more losses over the next six months.
"If the proposed merger with Inprise does not occur, other sources of financing are not secured and/or Corel's operating results do not improve, a cash deficiency may occur within the next three months," the company's 10-Q statement read.
A former director of the company has filed suit trying to block the merger, calling it "unfair." On April 10, the two companies announced that the merger waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 had expired.
Corel was closed today in observance of Good Friday. Its stock closed yesterday at $7.94 per share. It had reached a 52-week high of $44.50 in mid-December.
Corel has been touting the merger with Inprise, saying that the new company, to be called Corel, would be "a Linux powerhouse," offering a single source for a range of productivity applications, development tools and professional services.