Feature: Turf war spoils Betachance flotation

UPDATE: Despite having met its minimum subscription levels, online gaming company Betachance was today denied access to OFEX because of a legal wrangle with a fellow Mauritian turf accountant, Bowmans International.

Betachance's UK MD Richard Ryan said Betachance's Mauritius-based legal team was convinced that there was no case to answer and that the company was "110% sure it will win". Ryan could not know Bowmans motives, because Bowmans focuses on the US rather than UK markets and is telephone, not internet, based. But he confirmed that they were in competition for staff, saying that it had already taken on a number of former Bowmans employees.

Bowmans is attempting to stop Betachance from operating in Mauritius by saying it infringes the telephone-betting licence granted to Bowmans by the Ministry of Finance. Betachance contends, however, that it has a valid licence to provide an internet-betting service in the outlying Freeport Zone, granted by the Ministry Industry, Commerce and International Trade on 30 March this year.

Though convinced that his company will win, Ryan described the situation as "very disappointing" but insisted it was only a "temporary setback" and that the company had ample funds to continue its operations.

The company planned to raise £250,000 by issuing 6% of its equity, which it had earmarked for a marketing campaign. Ryan said this campaign would be postponed until the licensing issue is resolved. Peter Holmes, finance director of 19.5% Betachance shareholder VoyagerIT, estimated the legal process would take between two and three months.

The original closing date of 8 September for the subscription had already been put back to 22 September.

Managing director Godfrey Allen and Ryan are Betachance's biggest shareholders. On top of its 19.5% shareholding, VoyagerIT owns loan notes convertible into 15% of equity.

The case goes to court on 19 October.