StrongRoom AI placed into receivership amid EVP dispute
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The news: Strong Room Technology, operating as StrongRoom AI, has been placed into receivership, according to an ASIC filing.
Martin Gregory Walsh of Walsh & Associates has been appointed as receiver over specific banking assets of the company.
The context: The receivership appointment, made on 28 March 2025, applies to funds held in Australia and New Zealand Banking Group accounts and associated rights. The Financial Review reported that the receivers were called in by research and development financier Paddington Street Finance, part of the Sherman Group.
It comes after question were raised about StrongRoom's position amid a dispute with major investor EVP. Earlier this week, the VC firm withdrew from the medtech company's latest $17 million funding round, which it led, and alerted authorities over alleged financial discrepancies.
Strong Room Technology, which develops software for tracking medication usage, had planned to use the new funding to complete an acquisition announced in 2024.
However, EVP reversed its investment commitment and contacted police after discovering what it described as "significant discrepancies" in the company's financial accounts. The venture capital firm requested the return of its investment, which was denied, leading to the current receivership action over specific banking assets rather than the entire company.
Earlier today, Capital Brief reported that UK-based Tyson & Blake, an early investor in StrongRoom AI, has accused EVP of failing to notify other shareholders before it made the decision to call in police.
The source: ASIC
