5th May 2023 13:17
(Alliance News) - Tintra PLC shares plummeted on Friday, over a breakdown in discussions with its institutional investor Fintech Leaders Fund LLC.
Shares in the London-based artificial intelligence-led bank were down 11% to 80.00 pence each in London on Friday afternoon.
In December, Tintra said it had completed a placement to institutional investor FLF for USD10.0 million.
At the time, it said it planned to use the proceeds to fund the continuing development of the company's artificial intelligence platform and regulatory licensing build, as well as for general working capital purposes.
On Friday, Tintra said the company had been in discussions with FLF, with a view to reaching an agreement to bring the deed to an end.
It added that an agreement has not yet been reached to bring the deed to an end in an orderly way, despite the company's "best efforts".
Tintra noted that the discussions broke down when FLF issued the company with two statutory demands for a total amount of GBP2.9 million.
"The company views this as an unnecessarily aggressive tactic as these demands were issued in the midst of good faith negotiations related to bringing the deed to an end and just five business days after a payment was completed under the same deed," Tintra said.
"Having taken legal advice, the company strongly disputes not only the validity of these statutory demands but further contests that there are no valid notices at all due at this time and that the deed remains in place until such time as an agreement is reached to bring it to an end or the deed expires."
By Sophie Rose, Alliance News reporter
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