Supreme Ventures Limited (SVL) has been sued by an international company that SVL transacted business with before it went public three years ago.

Epsilon Global Equities Limited, an international company, is claiming that Supreme Ventures and its founders reneged on an agreement for the forward sale of shares to Epsilon reached prior to a private placement done by the lottery company in mid-2005. SVL went public early in 2006 with Brian George at the helm.

Epsilon further claims that, arising from that agreement, SVL was still indebted to it. But Supreme Ventures, which claims it discharged the debt towards the end of 2005, believes the suit is winnable and has said as much to shareholders in a notation to its accounts.

"At the time of the private placement in July 2005, the company had certain outstanding borrowing obligations to entities related to Epsilon, all of which were settled by October 31, 2005 out of the funds raised through the private placement," said SVL.

"Based on the preliminary assessments by the attorney represenbting the company, the directors are of the view that there will be no financial implications for the company arising from this case."

Respondents

Notice of the suit, it said, was received after balance sheet date December 15, 2008

The suit names the company and its founding directors as respondents.

The founders include Paul Hoo, SVL chairman, Ian Levy, and Peter Stewart, who is deceased, but whose widow Janette Stewart now controls his holdings.

Company secretary Winsome Minott said Wednesday that SVL's lawyers were still perusing the claims in the suit, reiterating that their initial assessment has been "no perceived threats or possible impact on the company."

Epsilon has not claimed specific damages, said Minott.

business@gleanerjm.com