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Bidstack Group PLC shares dropped on Tuesday, after it said it intends to claim damages against its commercial partner Azerion Technology BV for the ‘unlawful’ termination of their commercial agreement.
Shares in the London-based advertising agency were down 27% at 2.03 pence per share on Tuesday midday in London.
Bidstack said the two companies had been working to find a mutually agreeable solution to commercial issues raised by Azerion, during which ‘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 company said.
The company said it has performed its obligations under the agreement, and issued invoices which it expects to meet market expectations for financial 2022.
Bidstack claimed that it received notice from Azerion on December 30, that it was terminating the commercial agreement, the company said external legal advice had concluded that ‘Azerion has no present entitlement to end the agreement’. Bidstack added that it intends to claim damages.
Significant commercial progress has been made independently of Bidstack’s relationship with Azerion, the company said. The company has a ‘robust’ pipeline from its North American sales team, and has agreements with additional resellers to ‘ensure global coverage’ in non-core and non-exclusive markets.
By Harvey Dorset, Alliance News reporter
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