Milestone said whilst it pursues all avenues to provide a mutually acceptable solution regarding its October placing, should such an agreement not be forthcoming in the near future it would restart legal proceedings.
The company began a legal recovery process against the counterparty to the placement shortly after the placing failed.
"This process was put on hold whilst the Company engaged with the counterparty in order to try and resolve the situation," said Milestone.
"The company advises that whilst it is pursuing all avenues to provide a mutually acceptable solution, should such an agreement not be forthcoming in the near future, the company intends to recommence legal proceedings and will issue a statutory demand on the counterparty.
"Further updates regarding this matter will follow shortly.
"The Company continues to manage its working capital position carefully and it is expected it will need to raise further capital in the near future."