(PR NEWSWIRE) LML Agrees to Financing of Up to US$29,600,000
LML Agrees to Financing of Up to US$29,600,000
VANCOUVER, British Columbia, Feb. 14 /PRNewswire/ -- LML Payment Systems
Inc. (the "Company") (Nasdaq: LMLP) is pleased to announce it has entered
into agreements to issue 1,000,000 Units at a purchase price of US$12.00 per
Unit in a private placement totaling US$12,000,000 in cash proceeds upon
closing. Each Unit consists of one common share and one share purchase
warrant to purchase one common share. Each share purchase warrant is
exercisable at US$16.00 until March 31, 2002. If all of the share purchase
warrants, including the finder's share purchase warrants, issued in this
financing are exercised, the Company will receive an additional $17,600,000 in
cash consideration.
The Company has agreed to pay a 10% finder's fee in connection with this
financing, and the finder has agreed to pay this fee back to the Company as
consideration for the issuance to the finder of 100,000 Units and special
warrants. Each special warrant, for no additional cash consideration, is
convertible into one common share for every ten share purchase warrants
exercised. The 100,000 Units subscribed for by the finder are in addition to
the 1,000,000 Units being sold in the financing. Both the financing and
finder's fee have been made pursuant to Regulation S.
The Company is a financial payment processor specializing in providing
end-to-end check processing solutions for national, regional and local retail
merchants. The Company's processing services include traditional check
verification and collection along with electronic processing services
including Electronic Check Re-presentment whereby returned paper checks are
represented for payment electronically and Electronic Check Conversion,
whereby paper checks are converted to electronic transactions right at the
point of sale. The Company's intellectual property estate includes U.S. Patent
No. 5,484,988 with regard to a "Checkwriting Point of Sale System" which,
through a centralized database and authorization system, is capable of
providing and administering various electronic payment services for consumers
and businesses.
SOURCE LML Payment Systems, Inc.
-0- 02/14/2000
/CONTACT: Patrick Gaines, President, 604-689-4440, or Investor Relations,
800-888-2260, both of LML Payment Systems Inc./
(LMLP)
CO: LML Payment Systems, Inc.
ST: Florida, British Columbia
IN: TLS FIN
SU: OFR
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