(Alliance News) - St James House PLC said on Thursday it is reviewing available option including legal action to recover subscription funds owed by Auxilum Investere SJ Ltd after the deadline passed without payment being made.
The lottery and e-commerce operator said the GBP500,000 owed by the UK company controlled by a Michael and Linda Peters was not received by the Thursday deadline, adding that a letter before action has now been sent to Michael Peters by its legal advisor.
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 trading 9.1% lower at 25.00p each at midday Friday in London.
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 is in discussion with Auxilum's sole director, Michael Peters, who has provided assurance that the GBP500,000 will be paid.
Earlier in April, the company stated that it 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".
In October, St James House said revenue for the six months to July 31 fell by 23% year-on-year to GBP422,000 from GBP550,000, with pretax loss widening to GBP1.3 million from GBP668,000.
By Ife Taiwo; ifetaiwo@alliancenews.com
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