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Buddy Technologies (ASX:BUD) - CEO, David McLauchlan - The Market Herald
CEO, David McLauchlan
Source: Sydney Morning Herald
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  • Buddy Technologies (BUD) is gearing up to raise fresh capital after entering back-to-back trading halts
  • The tech stock will keep its shares paused from trade until Friday, November 13 — unless it's able to release details to the market before that date
  • As a result, investors are yet to find out just how much Buddy intends to raise, or even what the fresh funding will support
  • News of a capital raise comes after Buddy revealed it was in a legal dispute with a former prospective investor on Friday
  • CST Investments took Buddy to court for unspecified damages, but the company is fighting to get the ruling overturned
  • Buddy technologies shares last traded for 5.6 cents on Friday, November 6

Buddy Technologies (BUD) is gearing up to raise fresh capital after entering back-to-back trading halts.

The tech stock will keep its shares paused from trade until Friday, November 13 — unless it's able to release details to the market before that date.

As a result, investors are yet to find out just how much Buddy intends to raise, or even what the fresh funding will support.

News of a capital raise comes after Buddy revealed it was in a legal dispute with a former prospective investor on Friday.

Initially, the company engaged CST Investments via a share purchase agreement, which would see the American firm provide $12.5 million in working capital over two years. In exchange, the tech stock would provide 357 million shares to CST.

But when the tech stock's top 20 investors raised enough support during a late-May placement, Buddy terminated the agreement.

However, CST hit back and took the company to WA's district court — worse yet, because of Buddy's COVID-19 protocol, it claims it wasn't aware the summons had been sent via post to its registered office.

As a result, the District Court awarded a default judgement in CST's favour, ordering Buddy to pay unspecified damages. Since then, the company has vowed to fight the result, ordering its legal team to campaign to have the ruling set aside while it prepares a defence.

Buddy technologies shares last traded for 5.6 cents on Friday, November 6.

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