(Alliance News) - St James House PLC said on Monday it has begun legal proceedings in order to recover subscription funds owed by Auxilum Investere SJ Ltd.
The lottery and e-commerce operator said that the GBP500,000 owed by the UK company controlled by a Michael and Linda Peters remains outstanding despite Michael Peters making assurances that the amount would be paid.
In January, Windsor-based St James House said Auxilum subscribed for 1.7 million shares at 30 pence each, thereby acquiring a 30% stake.
The stock was untraded on Monday afternoon in London, last quoted at 20.00 pence each.
The company had welcomed the subscription having earlier warned about constraints on its working capital. "This incoming investment means that our working capital position is significantly improving," Chief Executive Graeme Paton said at the time.
In March, St James House said it has not received the funds despite requesting payment. It added that it was in discussion with Auxilum's sole director, Michael Peters, who provided assurance that the GBP500,000 would be paid.
Earlier in April, the company stated that its working capital position remained constrained, noting that it believes that the subscription funds due to be received at the end of April would "assist substantially".
"Legal proceedings by way of a formal statutory demand for payment has been issued to Michael Peters. [Michael] Peters and the company remain in discussion in the hope that it will be possible to complete the original subscription for GBP500,000 shortly," St James House said on Monday.
By Ife Taiwo; ifetaiwo@alliancenews.com
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