HOUSTON - Tidel Technologies, Inc. (OTC Pink Sheets: ATMS) says it has completed the
reorganization of its existing senior debt facility with Laurus Master Fund, Ltd.
According to a news release, Tidel has also closed an additional financing with Laurus Funds, a New York-based investment group that makes direct investments in small and mid cap companies, in the amount of $3.35 million.
Tidel paid $258,920 of past due accrued interest at closing; $300,000 of past due principal
payments and $292,988 of past due penalty interest was deferred until maturity on Nov. 24, 2006. Laurus Funds also converted $375,300 of other fees and penalties into common stock at a conversion price of 30 cents per share, resulting in the issuance of 1,251,000 shares of
Tidel common stock.
The new unpaid principal balance of the loan is approximately $6.7 million. Monthly principal payments will recommence Feb. 1, 2005.
Laurus extended the deadline for the filing of Tidel's Form 10-K for the year ended Sept. 30, 2002 until Jan. 31, 2005 and the deadline for the remainder of Tidel's other past due financial reports until July 31, 2005.
According to the release, Tidel agreed to pay to Laurus a reorganization fee of no less than $2 million on or before Feb. 24, 2010. Laurus would receive an allocated portion of the net proceeds from any future sale of equity or assets of Tidel that occurs on or prior to Nov. 26, 2009.
Tidel also completed an additional financing with Laurus Funds in the amount of $3.35 million.
This loan is comprised of a three-year convertible note in the amount of $1.5 million, a one-year convertible note in the amount of $600,000, and a one-year purchase order financing facility in the maximum amount of $1.25 million.
Of the total proceeds of this additional financing, $2.5 million was used for working capital, $417,833 was placed in an escrow account controlled by Laurus for future principal and interest payments, $258,920 was used to pay past due interest on the 2003 facility, and $139,750 was used for transaction fees and expenses.
Tidel says it expects to report operating losses for each of the quarters and for the fiscal year ended Sept. 30, 2004. Due to gains from certain non-operating items, the company expects to report a net income for the quarter ended Dec. 31, 2003 and March 31, 2004, and for the fiscal year ended Sept. 30, 2004.
Unaudited revenues for the fiscal year ended Sept. 30, 2004 were approximately $23.2 million, compared to $17.8 million and $19.4 million, respectively, for the 2003 and 2002 fiscal years.
