SYDNEY, N.S. -- A Cape Breton-based gaming technology company that has received millions of dollars in public assistance says it is closing its doors and laying off staff but still hopes to find a way to resolve its difficulties.
A news release from Techlink Entertainment said Monday the closure decision was made on Friday.
Company founder and chief executive John Xidos says the situation is "resolvable with the right level of understanding, co-operation and support among key parties."
He also says the closure was caused by financial shortfalls, but was unavailable for further comment.
The news release says the company is calling on local politicians and businesspeople to attend a meeting at the company's headquarters for further explanation of what's occurred and to "prevent another significant blow to the fragile local economy."
Techlink has been in operation for 20 years.
A spokeswoman for Nova Scotia Business Inc. says the Crown agency has authorized $13 million in equity investments and loans to the Sydney, N.S., firm since 2004, though not all of the funds have been disbursed.
Cindy Roberts said the agency currently has $8 million invested in equity and debt in Techlink.
"NSBI takes this situation very seriously as these are public dollars invested," Roberts wrote in an email.
She added that the province has changed her agency's mandate and venture capital is no longer part of its activities.
A spokesman for the Atlantic Canada Opportunities Agency said in an email that "ACOA is closely monitoring the situation" and referred The Canadian Press to the agency's website for the total amount provided.
A search of the site indicates the company received $4.4 million in assistance between 1999 and 2005 for various projects.
