(Sharecast News) - In-game marketing technology company Bidstack said on Tuesday that, under the commercial agreement with Azerion Technology announced on 17 December 2021, it had performed its obligations and issued invoices which it expected would meet market expectations for the 2022 financial year.
The AIM-traded firm said that, as it noted on 28 October, it had received an email from Azerion requesting certain information and reserving its rights under the agreement.
Bidstack said it responded with detailed information demonstrating its compliance with all areas identified.
"Following the announcement on 28 October, Bidstack had been working with Azerion to find a mutually acceptable solution to commercial issues raised by Azerion," the board said on Tuesday.
"In the course of those discussions, it became clear to the Bidstack board that Azerion was withholding payment of sums which Bidstack considers to be due and owing in accordance with the agreement.
"The discussions with Azerion have not led to a satisfactory conclusion for the company and its shareholders."
As a result, Bidstack said it had launched legal action to enforce payment of overdue sums.
"After the close of business on 30 December, Bidstack received notice from Azerion purporting to exercise an alleged right to terminate the agreement.
"Bidstack has taken appropriate external legal advice and has concluded that Azerion has no present entitlement to end the agreement.
"Bidstack now intends to claim damages for unlawful termination."
The company said it had "improving visibility" of 2023 revenue, adding that it was "pleased" with its "significant" commercial progress independent of the Azerion relationship.
"In addition to the robust pipeline from the company's recently-formed North American sales team, Bidstack has now brought on board a number of additional resellers in non-core and non-exclusive markets to ensure global coverage including MMP Worldwide, AdScholars and Totally Awesome, and has established a regional presence in Japan to service media and licensing opportunities.
"The company anticipates that it will be able to provide a trading update and additional information on the progress of its dispute with Azerion in due course."
At the close on Tuesday, shares in Bidstack Group were down 26.98% at 2.03p.
Reporting by Josh White for Sharecast.com.
