MeaWallet distributor and e-payments provider Invuo Technologies has announced more delays in the transfer of funds from AJ Group Holdings, and said Invuo's liquidity position is "critical". AJ Group had agreed to invest SEK 52 million in 20 million new shares and loans in Seamless Distribution Systems held by Invuo.
Invuo says there is now a high risk that sufficient funds from the AJ Group investment to continue operations will not be available to Invuo in a reasonable timeframe. It also announced that Denny Sternad has resigned from Invuo’s board of directors.
Invuo received a non-refundable deposit of SEK 1 million from AJ Group at the beginning of April, but on the last day of that month, it announced that the full payment had been delayed. It expected to receive the rest of the money shortly after that.
AJ Group, which has primary banking in Kenya, had been subject to unexpectedly long approval from the Kenyan Central Bank, which has strict processes for outbound money transfers above a certain size. The approval was hampered by the floods affecting much of Kenya in April, which reduced personnel availability. Alnoor Jamal, chairman of AJ Group, said at the end of April that the group was making every effort to complete the transfer in the following week or two.
Information from AJ Group recently received by Invuo indicates that AJ Group may seek to make the investment undertaking conditional on new requirements. This new information has forced Invuo’s management and the board to reassess the probability of actually receiving funds under the terms set out in the agreement.
Primarily as a result of the delays to the expected investment by AJ Group, Invuo’s liquidity position has become critical, it said. Management and the board will use every available avenue to seek alternative funding, in order to provide liquidity to allow operations to continue.
