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Money Centers of America v. Chex Services, Inc., FastFunds Financial Corporation and Equitex, Inc.
Date: 08-12-2005
Case Number: Unknown
Judge: Unknown
Court: Unknown
Plaintiff's Attorney: Unknown
Defendant's Attorney: Unknown
Money Centers of
America (OTC Bulletin Board: MCAM) announced today that it has reached an
agreement to settle an ongoing lawsuit with Equitex Inc. (Nasdaq: EQTX) and
Fastfunds Financial Corporation (OTC Bulletin Board: FFFC) on very favorable
terms.
Details of the settlement are described in a report on Form 8-K filed by
Money Centers of America with the Securities and Exchange Commission on July
28, 2005. The Form 8-K can be found online at
http://www.sec.gov/Archives/edgar/data/1165271/000117266505000420/form8k.txt .
A $2,000,000 debt reduction will be recognized in the 2nd Quarter of this
year.
"We are very pleased with this outcome and that we avoided a costly trial
that would have been a financial and business distraction to the company,"
said Christopher Wolfington, CEO of Money Centers of America, Inc. "This
settlement is a significant step forward for our Company, and the commitments
obtained from Equitex in this settlement represent real progress in our
ongoing efforts to ensure that our shareholders begin to reap the benefits of
our present business plan and short-term goal to profitability," said
Wolfington.
About Money Centers of America
Money Centers of America, Inc. provides cash access and Transaction
Management Systems for the gaming industry, focusing on the development of
specialty transactions and proprietary services in the cash access segment of
the funds transfer industry. For a complete corporate profile on Money Centers
of America, Inc., please visit our corporate website at
http://www.moneycenters.com .
Safe Harbor Notice: Certain matters discussed in this news release are
forward-looking statements, as defined in the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to a number of
known and unknown risks and uncertainties, including, but not limited to,
statements concerning Money Centers of America's commencement of a new
business plan, the ability to close pending transactions and other risks
detailed from time to time in Money Centers of America's filings with the
Securities and Exchange Commission. Actual results may differ materially from
those expressed in any forward-looking statements made by or on behalf of
Money Centers of America, Inc.
outstanding $2,000,000 principal liability under a $2,000,000 promissory note
from us to Chex, dated January 6, 2004, as well as any liability for accrued but
unpaid interest under that promissory note. We agreed to pay Chex $500,000
within 60 days of July 21, 2005. To secure our obligations under the Settlement
Agreement, we entered into a Security Agreement with Chex and Equitex pursuant
to which we granted Chex and Equitex a junior security interest in substantially
all of our assets. In addition, Money Centers agreed to deliver to Fastfunds
Financial, Inc., Chex's corporate parent, a contingent warrant to purchase up to
500,000 shares of our common stock at a purchase price of $0.50 per share. The
warrant is not exercisable until we achieve $1,000,000 in net income during a
fiscal year.
About This Case
What was the outcome of Money Centers of America v. Chex Services, Inc., FastFund...?
The outcome was: Under the Settlement Agreement, Equitex and Chex agreed to cancel our outstanding $2,000,000 principal liability under a $2,000,000 promissory note from us to Chex, dated January 6, 2004, as well as any liability for accrued but unpaid interest under that promissory note. We agreed to pay Chex $500,000 within 60 days of July 21, 2005. To secure our obligations under the Settlement Agreement, we entered into a Security Agreement with Chex and Equitex pursuant to which we granted Chex and Equitex a junior security interest in substantially all of our assets. In addition, Money Centers agreed to deliver to Fastfunds Financial, Inc., Chex's corporate parent, a contingent warrant to purchase up to 500,000 shares of our common stock at a purchase price of $0.50 per share. The warrant is not exercisable until we achieve $1,000,000 in net income during a fiscal year.
Which court heard Money Centers of America v. Chex Services, Inc., FastFund...?
This case was heard in Unknown, PA. The presiding judge was Unknown.
Who were the attorneys in Money Centers of America v. Chex Services, Inc., FastFund...?
Plaintiff's attorney: Unknown. Defendant's attorney: Unknown.
When was Money Centers of America v. Chex Services, Inc., FastFund... decided?
This case was decided on August 12, 2005.