US Dataworks, Inc. Signs Contract With Hyundai Syscomm
HOUSTON, Jan 04, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- US Dataworks, Inc. (AMEX: UDW), a leading developer of payment processing solutions, today announced that on December 29, 2006, it entered into a Software Integration and Resale Agreement ("Resale Agreement") with Hyundai Syscomm Corp., a California corporation ("Hyundai"), pursuant to which UDW has exclusive rights to resell or lease Hyundai's automated teller machines/teller-less kiosks, enhanced by UDW's proprietary Clearingworks(R) software, in North America and India. The Resale Agreement provides for UDW's recognition of revenues generated by such resales and/or leases to be at least $25,000,000 by the end of UDW's 2008 fiscal year 2008 (March 31, 2008). If revenues are less than expected, Hyundai may be required to make an additional cash payment to UDW. Gross profits generated from such resales and/or leases in North America and Asia, inclusive of India, will be shared equally between the companies.
In addition, UDW and Hyundai entered into a certain Stock Purchase Agreement ("Purchase Agreement") on December 29, 2006, pursuant to which UDW issued to Hyundai an aggregate of 6,100,000 shares of the Company's Common Stock for an aggregate purchase price of $1,500,000 ("Purchased Shares"). In connection with the Purchase Agreement, and subject to shareholder approval, the Company will also issue to Hyundai a warrant to purchase up to an aggregate of 14,300,000 shares of UDW's Common Stock (the "Warrant Shares"); provided, however, in no event shall the aggregate of Hyundai's Warrant Shares and Purchased Shares exceed 39.9% of the Company's total outstanding shares.
To acquire such Warrant Shares, Hyundai may elect to apply its allocation of gross profits under the Resale Agreement, in lieu of receiving such allocation in cash, at the vesting rate of $1.00 per share. These Warrant Shares shall have an exercise price of $0.01 per share, subject to certain anti-dilution adjustments; provided, however, in no event shall the aggregate of Hyundai's Warrant Shares and Purchased Shares exceed 39.9% of the Company's total outstanding shares.
"Hybridity and diversity, through the merger of CDMA expertise and UDW's core offerings, will help reposition the Hyundai Syscomm-UDW solutions in both the more traditionally profitable markets, as well as nascent markets", says Samuel Lee, Chairman of Hyundai Syscomm.
Adds Chairman and CEO Charles E. Ramey, "We are very excited about this partnership because we believe it will strengthen our core capabilities as well as open up new revenue generation opportunities for Clearingworks on a global level." |
