Bidstack (LON: BIDS) shares tumbled Tuesday after it said it has commenced legal action against Azerion Technology to enforce payment of overdue sums.
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The in-game brand activation platform claimed that as per its agreement with Azerion — announced on December 17, 2021 — it has “performed its obligations under the agreement and issued invoices which it expects will meet market expectations for FY22.”
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The agreement announced in December was a two-year commercial deal, making Azerion the exclusive commercial partner across Bidstack's inventory for the period.
However, in late October 2022, Bidstack stated that it received an email from Azerion requesting specific information and reserving its rights under the agreement, with Bidstack responding with information demonstrating its compliance.
Since then, the two companies have been working to find a solution to the commercial issues raised by Azerion, but Bidstack believes that during the discussions, it was clear “Azerion was withholding payment of sums which Bidstack considers to be due and owing in accordance with the agreement.”
As a result, a suitable conclusion wasn't reached, which led to the announcement of legal action by Bidstack.
In addition, Bidstack said that after the close of business on December 30, it received notice from Azerion looking to exercise its right to terminate the agreement. However, the company added that it has taken external legal advice and believes there is no current entitlement to end the agreement. Therefore, it declared it now intends to claim damages for unlawful termination.
Bidstack shares plunged more than 24% on the news, currently trading around the 2.09p mark.
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