LOM Capital said yesterday that they are meeting with representatives of Renaissance Mining Corp whose business activities are under investigation by the SEC.

LOM Capital has been widely reported as assisting Renaissance Mining in a private equity financing to raise $6 million as part of a reverse takeover of Sedona Software Solutions Inc.

A spokesperson for LOM Capital said the company is in the process of due diligence relating to Renaissance Mining, a private company in Colorado.

Publicly-listed Sedona Software Solutions Inc announced on January 21 announced on January 21 that it had signed a letter of intent to acquire Renaissance Mining. Sedona Software's shares were suspended by the SEC on Wednesday.

Sedona Software's chairman Anthony Wile, said the company planned to become "one of the premier intermediate gold producers in the world."

Shares in Sedona Software rose sharply at the news of the takeover. However the SEC suspended trading, citing concerns about accuracy and information made public by the company about the proposed merger.

The merger could be described as a reverse take-over, as Sedona Software is a shell company. Its original SEC prospectus stated that its purpose was to market Autonet, a product for traffic wardens to manage parking violations.

Renaissance Mining has no assets or liabilities and was apparently seeking to raise capital in order to finance future mining operations.

The Renaissance Mining website states that it possesses letters of intent with Central American Mine Holdings Ltd., a private company in Belize, to acquire two producing gold mines, the La Libertad and Bonanaza mines in Nicaraga, and an interest in the Cerro Quema gold project in Panama.

Questioned about the share suspension, a spokesperson for LOM said: "It is our understanding that price volatility led to Sedona Technologies' stock being recently halted, pending clarification to the market from Renaissance Mining as to its merger plans."

The investment company which has offices in Bermuda, Bahamas, Grand Cayman and Guernsey declined to comment on the proposed private placement.

But according to investment sources LOM's role in a private equity financing would be to seek investment from sophisticated investment institutions or high net worth individuals.

The Bermuda regulatory authority "know your client" framework does not scrutinise individual transactions, but requires investment professionals to obtain all relevant information about a potential client's financial circumstances.