Troubled HR software maker Tikforce has failed to respond satisfactorily to the ASX’s query about an alleged default — so it’s staying in suspension.

The company is accused of defaulting on a convertible note by a shareholder who alleges the company lost an unnamed major contract and did not tell the market, thereby breaching the terms of the note.

Stockhead understands the contract was a trial with the Federal government’s JobActive program, which Tikforce said at one point could earn $1.9 million in revenue.

The company also allegedly lost several other contracts without telling the market.

And it revealed the ending of an early contract with Australia Post — used in IPO marketing in 2015 and 2016 — on page 62 of its 2017 annual report: labelled under “contingent liabilities”. Tikforce said there had been a dispute about fees which had been settled.

On Wednesday Tikforce said it was suspended from the bourse “pending a response to an ASX query letter and an alleged default under a convertible note”.

Earlier it said it was suspended in order to sort out $1.2 million in funds to be raised by a corporate advisor in Perth.

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“The company’s securities will continue to remain suspended in accordance with Listing Rule 17.3 for failure to respond to an ASX query. The suspension will continue until the company provides a satisfactory response to ASX’s query.”

“The suspension was extended on Friday, 23 March 2018 and Tuesday, 3 April 2018 pending an announcement confirming receipt of $1.2 million in funds,” Tikforce told investors.

Last night Tikforce received the $1.2 million convertible note funding from Regency Corporate, a week after it was due to be announced. It said an extra $800,000 had been made available “to draw down as and when required”.

It is also still waiting on $400,000 in funding to come through from Kyrgyzstan-based advisor East Star Capital (UK).

Stockhead has unsuccessfully sought comment from Tikforce on multiple occasions.

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