Trade software company TradeWindow said nChain has failed to make a payment. Photo / File
Trade software company TradeWindow said nChain has failed to make a payment. Photo / File
TradeWindow says its financing arrangments are under review after British technology company nChain failed to stump up cash as part of an agreed strategic deal between the two.
The parties announced an agreement in July and said at the time that nChain would take a 19.99 per cent stake inTradeWindow for an $11.1 million investment.
Under its terms, nChain was to subscribe for 28m new TradeWindow ordinary shares at 39.5c a share.
On commencement, the agreement required nChain to settle the cash portion of the investment - worth $2.391m - in exchange for 6,050,508 of those shares.
“During the course of Friday evening and over the weekend, it became apparent to TradeWindow that following board and management changes at nChain, the UK company is currently not in a position to make payment of the cash subscription amount as scheduled under the strategic partnership agreement,” TradeWindow said.
TradeWindow said it had hired legal counsel and intended to pursue available remedies in respect of the breach by nChain under the strategic partnership agreements.
“The failure of nChain to settle the cash subscription payment has triggered an event of review under TradeWindow’s bank facility agreements and TradeWindow will engage its financier immediately to seek a waiver of the review event,” the company said in a statement to the NZX.
The nChain deal was approved by shareholders at the annual meeting on August 31.
