Tikforce corporate advisor launches lawsuit against its former client
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A major shareholder and former Tikforce corporate advisor has launched a lawsuit against the troubled HR software maker.
Tikforce hired Alignment Capital in October to help raise up to $750,000 via a convertible note.
Alignment later alleged a breach of that agreement (or mandate) and has now launched proceedings in the Supreme Court of Western Australia.
Tikforce (ASX:TKF) — a platform that performs background checks on employees — has had a number of stumbles this year, such as shareholder requisitioned meetings trying to kick out the board.
Today Tikforce told investors in an ASX announcement the alleged breaches included “breach of contract, proposed capital raising, issue of options, non reduction in CEO salary, acceptance of new funding, failure of obtaining independent research note and failure to commit to roadshows”.
The claim for the alleged breaches included the proposed issue of options and fees under the agreement.
“Alignment is alleging an entitlement to damages, interest at the rate of 6 per cent per annum from the date such damages were incurred and costs. The claim has not been quantified by Alignment.”
Tikforce told investors it “disputes Alignment’s claims in full and will be fully defending the proceedings”.
The software maker “also anticipates counter-claiming for damages arising from the circumstances relating to the agreement and other actions by Alignment”.
Tikforce also said it had received demands for debt payments totalling $354,000 concerning an unsecured convertible note issued to Alignment and seveal other parties in November.
Tikforce said the debts were not due until June 30.
Tikforcer this month raised $1.2 million from sophisticated and professional investors and had a further facility of $800,000.
Tikforce shares are suspended and last traded at 1.6c.