LML Announces Phoenix EPS Agreement Amended
VANCOUVER, British Columbia, Jun 28, 2001 /PRNewswire via COMTEX/ -- LML
Payment Systems Inc. (the "Corporation") (Nasdaq: LMLP) announces it has entered
into an amending agreement (the "Amending Agreement") with respect to its
purchase of Phoenix EPS Inc. on July 9, 2000. As part of that transaction, the
Corporation agreed to certain price protection covenants for the benefit of the
former shareholders of Phoenix EPS that involved the further issuance of
additional common shares of the Corporation. Rather than having the former
shareholders of Phoenix EPS sell all their original shares and then exercise the
price protection mechanism, the Corporation has agreed to issue an additional
679,134 shares of the Corporation's common stock to the former shareholders of
Phoenix EPS Inc.
The Corporation's common shares issued pursuant to the Amending Agreement are
being issued as restricted securities and may only be resold under Rule 144 as
currently in effect or, alternatively, registration under the 1933 Act or in
compliance with another exemption from registration requirements.
"The original price protection mechanism was predicated in part, on the former
Phoenix shareholders selling all of the LML shares they had received in the
original transaction and then being issued new additional shares based upon a
present share value significantly lower than the original share value. This
amendment satisfies our obligations regarding price protection and is something
we believe to be in the current and future best interests of all our
shareholders," said Corporation President and CEO, Patrick H. Gaines.
The Corporation, through its subsidiary LML Payment Systems Corp., is a
financial payment processor providing end-to-end check processing solutions
including Electronic Check Conversion (whereby paper checks are converted into
electronic transactions), electronic check verification, electronic check
re-presentment (whereby returned paper checks are re-presented for payment
electronically), and primary and secondary check collection to supermarkets,
grocery stores, multilane retailers, convenience stores and other national,
regional and local retailers. We also specialize in providing selective routing,
including real-time monitoring of check, debit, credit and EBT transactions for
authorization and settlement through our flagship transaction processing product
REPS (Retail Electronic Payment System). The Corporation's intellectual property
estate, owned by subsidiary LML Patent Corp, includes new U.S. Patent No.
6,164,528 regarding Internet checking transactions, in addition to U.S. Patent
No. 5,484,988 which describes 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 customers and
businesses. Also included in our intellectual property estate is a recently
received Notice of Allowance from the United States Patent and Trademark Office
for a new patent based upon United States Patent Application Serial No.
09/562,303. The new patent describes corporate checks and electronic fund
transfers (EFT) and relates to existing U.S. Patent No. 6,164,528 and U.S.
Patent No. 5,484,988 (described above).
Statements contained in this news release which are not historical facts are
forward-looking statements, subject to uncertainties and risks. For a discussion
of the risks associated with the Corporation's business, please see the
documents filed by the Corporation with the SEC.
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SOURCE LML Payment Systems Inc.
CONTACT: Patrick H. Gaines, President and CEO, 604-689-4440, or Invest
r
Relations, 800-888-2260, both of LML Payment Systems Inc.
(LMLP)
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KEYWORD: British Columbia
Arizona
INDUSTRY KEYWORD: CPR
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