Trading of Tarquin Group Inc. shares has been halted as the industrial technology company struggles to deal with its financial woes.

The Ottawa-based company the TSX Venture Exchange has frozen trading of Tarquin's shares due to the company's failure to pay annual sustaining fees.

The company said it doesn't current expect to be in a position to make the TSX Venture Exchange payment within 10 business days of the halt, which means it faces suspension of its shares.

As well, the May 2 end-date for the forbearance period agreed to by all Tarquin's secured creditors has not been extended, and Quorum Investment Pool LP is now demanding payment.

Quorum had earlier said it would seize Tarquin's companies, including laser inspection systems maker Process Photonics and automated food inspection technology manufacturer Dipix, and assume responsibility for all or part of the company's secured debt, if Tarquin was unable to make its payments.

The Royal Bank of Canada is also proceeding to set off bank account deposits against amounts owing to the bank.

Tarquin had attempted to raise $5 million in a private placement announced in April 2007, but unfavourable market conditions forced the company to say in September that it would be lowering its expectations to $3 million.

Then in November, the company said it had received a $300,000 loan from Quorum, with no completion in sight for its private placement, and it said RBC was transferring responsibility for Tarquin's credit facilities to the bank's Special Loans and Advisory Group as a result of the company's financial difficulties.

Tarquin noted its creditors have said they may take "additional unspecified enforcement steps," but that it did not know what additional measures would be taken or when they would occur.