Earl Stevens said he wanted to take up the rights issue but could not secure the money. Photo / Dean Purcell

Earl Stevens said he wanted to take up the rights issue but could not secure the money. Photo / Dean Purcell

Bad blood is flowing within ICP Biotechnology over the failure of founder, major shareholder and recently ousted managing director Earl Stevens to take up his rights in the serum products company's just-completed cash issue.

The July 9 prospectus stated the Earl and Tracey Stevens Family Trust, with 22.22 per cent, "confirmed to the directors that they intend to fully subscribe to their entitlements".

Stevens, who was on his last day of three months' "gardening leave" since his removal as managing director, denied making such a firm commitment other than in a private email to director Alastair Ward.

He also said the company was being economical with its public disclosures and queried the intentions of the other major shareholder, listed company Viking Capital with 13.6 per cent, controlled by Brent King.

On Thursday, ICP issued a statement saying that at least 60 per cent of the issue to raise $10 million had been taken up, but "contrary to expectations" the Stevens trust did not take up its rights.

Stevens said he wanted to take up his rights but "simply I didn't have the finances".

"The circumstances of the last few months have put me under immense pressure personally. Most of my net worth is tied up with the company.

"I don't know why the company tries to beat up on me the whole time. I never made any representations to the company other than one brief email."

In that email to Ward, he wrote: "At this point in time I have yet to secure the funds required but I am working on a number of sources."

Stevens said the directors chose to put comment about his intentions in the prospectus but he never signed off on it.

ICP, which back-door listed in May 2005 and makes proteins and serum from animal blood, has been going through turbulent times.

On May 7, it issued a shock "trading update" saying it would not meet forecast sales targets or break even in the June financial year as previously signalled. It said it was unlikely to book significant new sales until 2008 and forecast an ebitda (earnings before interest, tax, depreciation and amortisation) loss of about $8 million.

On May 18, Stevens, then owning 30 per cent of the company, "stepped down" as MD, and on May 30 the company announced a restructuring. The rights issue was announced on June 7 and on June 26 Stevens stepped down from the board.

At least one ICP shareholder has complained to the stock exchange and Securities Commission about the timing of Stevens' sale of a million shares in an off-market transaction to repay $175,000. Stevens said that sale had been approved in advance by the board.