U.S. Wireless Data Reports on Notification Regarding Bridge Loan and Equity Transaction

Tuesday 4 November 2003 06:26 CET | News

U.S. Wireless Data, has announced that on October 30, 2003, the company received notification from Brascan Financial Corporation (Brascan), on behalf of its designate, MIST (MIST), an affiliate of Brascan, that it no longer intends to pursue the equity financing transaction contemplated by the term sheet with USWD as previously announced on September 16, 2003.

However, the company is continuing to explore alternative transactions with MIST, although there can be no assurance that any such transaction will be consummated, or consummated on terms favorable to the company. Brascan indicated that despite certain technical defaults in connection with their bridge loan to USWD, as previously reported in the companys Annual Report on Form 10-KSB, as filed on October 14, 2003 (which defaults were waived through October 31, 2003), it is willing to discuss continuing to extend the balance of the remaining unadvanced amounts under the bridge loan that approximate $1 million. However, there can be no assurance that Brascan will continue to extend such remaining amounts or that it will not declare a default under the bridge loan documentation subsequent to October 31, 2003. In connection with MISTs determination not to proceed with the equity financing transaction as previously contemplated, Brascan has released USWD from its obligations to not solicit alternative financings from other potential investors, and the break-up fee that was associated with such a financing. USWD is currently exploring such other options. In view of MISTs determination not to proceed with the equity financing transaction as contemplated, the warrant to purchase 10,000,000 shares of USWD common stock issued to Brascan in connection with the bridge loan will expire in September 2008 and will become exercisable on the earlier of December 31, 2003, or upon a consolidation or merger with another entity, or the sale, transfer or other disposition of all or substantially all of the companys assets and properties to another entity.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce