From across the board23 Dec 2020 17:05
Thanks to Plunge Advfn
A timeline of recent events and my assessment thereof:
13/11/2020 - LSAI receives a defamation 'letter before action' alleging it has made false statements about Blis which have the potential to cause reputational harm and financial loss.
30/11/2020 - The trading update announces cash resources are sufficient until early 2022. Presumably this determination has factored in provision for impending legal fees, thereby implying 2021 revenue flows should be sufficient to meet working capital requirements next year.
14/12/2020 - The Company informs shareholders that Blis has retrospectively informed LSAI customers there are “material flaws� in the Verify platform. As a consequence, the directors have taken steps to protect Verify.
In my opinion, this last point is interesting. Does this mean LSAI has an opportunity to issue a counter claim against Blis for potential reputational harm and financial loss?
All things considered, it would appear Blis is not in a good position.