Bidstack says Azerion has no entitlement to end agreement
The in-game advertising company said it is in “active discussions on a number of significant global revenue opportunities”, including with additional resellers, licensors and media agreements
Bidstack Group PLC -
Bidstack Group PLC (AIM:BIDS, OTC:FTBGF) denied press reports that it is involved in litigation with European partner Azerion, said there are no discussions regarding an offer for the company and that October was its highest-grossing month to date.
The in-game advertising company said it received an email from Azerion earlier this month requesting certain information and reserving its rights under the agreement signed last December.
Earlier this week, Bidstack said it plans to carry out a business review to reassess and, if necessary, renegotiate existing and new reseller engagements in all geographies, based on the recent interest in North America and Japan.
Netherland-based Azerion is “primarily a European-based group, with its sales-reach strongest in these territories”, it noted today.
“Given the nature of the group's strong ongoing commercial relationship with Azerion and the extensive work taking place on the ground to ensure the success of the partnership by both Azerion and Bidstack, the directors were surprised to receive this email,” the UK-based company said in a statement this morning, sharing details of a letter that had been sent to investors.
“At a commercial level, the group's arrangements with Azerion continue to be operated on a 'business as usual' basis by both parties, with October already the highest grossing month to date and with November and December anticipated to grow further month on month. Bidstack has responded with detailed information demonstrating the group's compliance with all areas identified.”
The AIM-listed company said it has taken external legal advice and has concluded that Azerion has “no present entitlement to end its agreement with the group”.
New chief revenue officer Jude O'Connor was said to be in “active discussions on a number of significant global revenue opportunities”, including additional resellers, licensors and media agreements, with anticipated contracts in the next financial year, the company said, adding that for 2022 and 2023 it is currently trading in line with market expectations.