US Dataworks Raises $1.1 Million From Warrant Exercises
December 14 2004 - 4:38PM
PR Newswire (US)
US Dataworks Raises $1.1 Million From Warrant Exercises HOUSTON,
Dec. 14 /PRNewswire-FirstCall/ -- US Dataworks (AMEX:UDW), a
leading developer of payment processing solutions, today announced
the completion of an Amended Warrants Agreement wherein certain
investors accelerated the exercise of previously issued common
stock warrants at a reduced exercise price of $0.90 per share. A
total of $1,092,607 was raised from the exercise of 1,214,008
warrants. On December 6, 2004, US Dataworks, Inc. (the "Company")
executed an Amended Warrants Agreement amending its warrants to
purchase in the aggregate 5,135,045 shares of the Company's common
stock held by certain existing investors. Of the shares covered by
the Amended Warrants Agreement, 2,888,201 have an original per
share exercise price of $1.61 and expire on April 20, 2011; 722,051
have an original per share exercise price of $1.61 and expire
January 22, 2005; 1,264,793 have an original per share exercise
price of $2.00 and expire on October 1, 2006; and the remaining
260,000 have original per share exercise prices ranging between
$1.15 and $1.34 and expire in July and August 2006. The Amended
Warrants Agreement reduced the exercise price of the warrants to
$0.90 per share if exercised in whole or in part prior to 5:00
p.m., C.S.T., Monday, December 13, 2004. The adjusted exercise
price was not binding upon the Company if less than Two Million
Dollars ($2,000,000) was received pursuant to the Amended Warrants
Agreement terms. The Company has received acceptances of the terms
of its Amended Warrants Agreement from holders of 559,007 warrants
that expire January 22, 2005 and 665,001 warrants that expire
October 1, 2006. Accordingly, the Company has elected to amend the
warrants pursuant to the terms of the Amended Warrants Agreement
and has accepted the $1.1 million in new capital funding in
exchange for the cancellation of the 1,214,008 warrants and the
issuance of a similar number of new shares of its common stock.
Following the issuance of these new shares, the Company will have
approximately 28,780,000 shares issued and outstanding. "We believe
this $1.1 million in additional capital accomplished through the
exercise of previously issued warrants represents the least
dilutive equity financing currently available to us. This
additional capital will defer future financing transactions and
provide us valuable additional months to build our market share in
the very active payment processing space and add to our
transactional revenue base," stated John Reiland, the Company's
CFO. ABOUT US DATAWORKS US Dataworks is a developer of payment
processing solutions, focused on the Financial Services market,
Federal, State and local governments, billers and retailers.
Software developed by US Dataworks is designed to enable
organizations to transition from traditional paper-based payment
and billing processes to electronic solutions that automate
end-to-end processes for accepting and clearing checks. Except for
the historical information contained herein, the matters set forth
in this press release, including, but not limited the extent to
which the Company's balance sheet has been strengthened, leadership
in the ARC market has been captured and efforts toward
profitability have been continued and the increasing of our efforts
toward capturing further market share in ARC, Check-21 and other
electronic payment processing solutions are forward- looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially, including, but
not limited to, the Company's position in the marketplace, our
ability to develop and timely introduce products that address
market demand, the impact of alternative technological advances and
competitive products, market fluctuations, our ability to obtain
future financing and other risks detailed from time to time in the
SEC reports of US Dataworks, Inc., including its annual report on
Form 10-KSB/A for the period ended March 31, 2004. These
forward-looking statements speak only as of the date hereof. US
Dataworks disclaims any obligation to update these forward-looking
statements. For more information, contacts: John Figone - US
Dataworks (713) 934-3855 ext. 250 Ken Dennard - investor contact
(713) 529-6600 DATASOURCE: US Dataworks, Inc. CONTACT: John Figone
of US Dataworks, Inc., +1-713-934-3855 ext. 250; or investors, Ken
Dennard, +1-713-529-6600, or , for US Dataworks, Inc.
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