LONDON (Alliance News) - Akers Biosciences Inc said Monday it has served a notice of default to shareholder ChubeWorkx Guernsey Ltd due to it failing to pay on time two instalments under a promissory note, and has filed a suit in the District Court of New Jersey in the US to stop ChubeWorkx from selling its shares in the company.
ChubeWorkx has a 9.97% interest in Akers.
ChubeWorkx issued the promissory note in the aggregate amount of USD1.48 million at the end of 2014. The note was payable in sixty equal instalments, and pays interest of 5% per year. Although Akers did receive the March 1 and April 1 instalments, it has served a notice of default for ChubeWorkx as it failed to pay either instalment in the time period required by the note.
Akers now says ChubeWorkx must immediately satisfy all monies owed and outstanding on the note, amounting to USD1.37 million.
In the event of a default, Akers has the right to require ChubeWorkx to transfer all of its shares back to the company, so Akers said it has filed the suit against ChubeWorkx to enforce this remedy and prevent ChubeWorkx from selling its shares to any third parties.
Shares in Akers are untraded Monday morning. It last closed at 299.00 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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