11th Jun 2015 10:29
LONDON (Alliance News) - Sefton Resources Inc shares rose on Thursday after it said its application to move the Colorado court case brought against the company by former Executive Chairman Jim Ellerton to the Federal Court from the state District Court was approved.
Sefton said it has "removed the recent legal action" filed by Ellerton, who has filed claims for unspecified damages against the company and some directors in relation to his resignation in 2013.
Sefton shares were up 7.7% to 0.167 pence per share on Thursday morning following the announcement.
Chief Financial Officer Raylene Whitford told Alliance News that the company applied to remove the court case from the District Court, and asked for it to be taken to the Federal Court.
"The company yesterday removed the recent legal action brought by Jim Ellerton and C&J Resources to Federal Court in Colorado, thus the State Court no longer has jurisdiction to preside over the case. As a result, the State Court hearing formerly set for today at 2030 BST has been cancelled," Sefton had said earlier in a statement.
C&J resources is Ellerton's former consultancy company that had been providing Sefton with services during his reign as chief executive.
At the end of May, Ellerton lodged a legal claim against the company, two directors and one former director claiming damages related to his resignation from the company's board, the termination of his consulting contract and its deal with Hawker Energy. Sefton had denied the allegations, claiming they were "without merit".
Sefton Thursday said it would release a further update concerning the litigation as the matter progresses.
Sefton has still not appointed a new chief executive since Ellerton resigned in August 2013, and said in May that it was not going to appoint a replacement until a complete assessment had been conducted on the potential impact of the claims.
In addition, Sefton Thursday said the three-year equity finance facility provided by Darwin Strategic Ltd, which was agreed in principal back in 2012, has been finalised.
By Joshua Warner; [email protected]; @JoshAlliance
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