US Dataworks, Inc., a leading developer of payment processing solutions, announced the mutual and amicable termination of the Software Integration and Resale Agreement and Stock Purchase Agreement previously entered into with Hyundai Syscomm Corp. on December 29, 2006, as amended.
Timing differences in connection with the roll-out and market conditions led both companies to conclude that a termination of the Resale and Purchase Agreements would best serve both companies and their respective shareholders.
“While we had high expectations for our partnership with Hyundai, we concluded that it could not be fully implemented on a timetable acceptable to both parties,” said Chairman and CEO Charles E. Ramey.
Hyundai will return the 6.1 million shares of the Company’s common stock, which has been held in escrow, and will no longer be entitled to receive any warrants to purchase shares of the Company’s common stock. The Company plans to retire the returned shares, which shall have an accretive effect on the remaining shares outstanding. The Company will no longer be entitled to receive the contemplated purchase price of $1.5 million. Further, as a condition of the nullification, each party will no longer have any duties or obligations ascribed to the Resale and Purchase Agreements.
Because the Company maintained the counterbalancing reserve entries, it will not need to restate its previously filed financial statements.
About US Dataworks, Inc.
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. Additional information about US Dataworks is available at http://www.usdataworks.com.