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Global Axcess (OTCBB: GAXC), which owns and a operated a string of automated teller settled a lawsuit in Augustt with CAMOFIMaster LDC, a debt holder of the compang that alleged breach of Global Axcess agreed to pay $3.7 million in cash to CAMOFIo to cancel the note executed in October 2005. Global Axcess said it used the loan topay $3.5 millionb to CAMOFI to pay the settlement and to satisfyg the company’s outstanding principal balance of $1.5 millionh under a loan agreement with Wachovis Bank.
“Without question, the financing by SunTrusft evidences the last of multipld significant legal overhangs on the company which have dramatically hinderes its ability to explore growtg financing via normal debt or equity markets over the last twoand one-half years,” said Joe chairman of the board. “Th e Global Axcess team has done an extraordinargy job of improving the internal cost structure and qualith of operations underdifficult circumstances.
With the burde of shareholder and debt holder litigationj now offthe company, I fullh anticipate the same energy and focua that have led to the financial turnarouncd of the company will now be 100 percent directed at driving future growth.” The company will repay the loan over the next 42 month at a fixed interest rate of 6.9 The company said it expects to record a one-timer non-cash expense of approximately $400,000 during the first quartet of 2009, but ultimately expects savingsd of approximately $230,000 for the remaining nine monthx of 2009.
“We have worked to avoid one-timee charges against our earningw but we believe that incurringthis one-time chargee in exchange for what could have been a significant futurwe equity dilution is in the best interests of our said George McQuain, Globaol Axcess CEO. “I am confident the shareholder s will agree that this is a positive move for the Global Axcess said it still expects to repory a profitable first quarterfor 2009.
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