US Dataworks (AMEX:UDW)
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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.