CyberCash investors restructure debt

CyberCash investors restructure debt

Investors Rose Glen Capital and Palladin have agreed to restructure their warrant and debt agreements with CyberCash enabling the proposed merger with Network 1 Financial to go through.

CyberCash founder and chairman Bill Melton quit the company last week following tense negotiations with investors who found themselves sitting on a pile of CyberCash stock after the company's share price nose dived from over $10 to under $1 towards the year end.

Under a deal struck late last week, Rose Glen and Palladin have agreed to settle for 7.7 million shares of CyberCash common stock in exchange for cancelling all warrants - which would have entitled them to over 15 million shares in the stricken company.

With the threat of stock dilution removed, the proposed all-share transaction for the acquisition of Network 1, announced in December, can now proceed as planned.

Comments: (0)