Cash Technologies, Inc. (Amex: TQ) ("Cash Tech"), announced today that it has completed a $2,000,000 investment in Business Intelligent Processing Systems, Limited ("BIPS"), a London-based payment processor, in exchange for a 10% equity stake in BIPS.
BIPS was formed by the founders of Copeland Burtnick Associates, Ltd., pioneers in the online payment industry, providing domestic and international credit card processing, fraud and risk management services and consulting for online merchants in retail and gaming. BIPS is also a distributor of Cash Tech's prepaid debit card, marketed under the brand name Greenback Card(TM). Prepaid debit cards are new to the European market, where cross border money transfers, e-wallet functionality and other advanced features of Cash Tech's prepaid cards can be of significant value to cardholders and merchants.
Under the terms of the investment, Cash Technologies has issued 200 shares of its Series M Convertible Preferred Stock (the "Preferred Stock") to BIPS in exchange for 10% of the outstanding shares of BIPS (the "BIPS Shares"). The Preferred Stock is convertible into shares of Cash Tech's common stock after June 1, 2007 at a conversion price of between $1.00 and $2.00 per share, determined at the time of conversion based on the market value of the common stock, resulting in the issuance of between 1,000,000 and 2,000,000 shares of Cash Tech common stock to BIPS. In addition, if BIPS does not reach certain revenue targets within two years, Cash Tech can repurchase up to 75% of the Preferred Stock for $.01 per share. Preferred Stock which is subject to Cash Tech's repurchasing rights cannot be converted. Cash Technologies will have the right to appoint a director to the board of directors of BIPS.
Sean Copeland, Managing Director of BIPS, commented, "The partnership with Cash Technologies has far reaching benefits for both organizations. The collective expertise and products of our two organizations will take advantage of exploding payment processing and prepaid debit card opportunities in Europe and the U.S."
Bruce Korman, CEO of Cash Technologies, remarked, "This is an exciting development for Cash Tech. The investment in BIPS creates a relationship that brings Cash Tech another revenue stream, access to leading edge payment processing tools and a first mover's advantage in the rapidly developing European prepaid card market."
Business Intelligent Processing Systems, Limited develops and manages commercial payment systems and risk management solutions. BIPS also offers prepaid card products for general use, payroll and gift card solutions. BIPS's proprietary software gives merchants worldwide the ability to seamlessly integrate online commerce and banking operations, providing secure online reporting, in-depth marketing information, transaction-based data analysis, customized risk management and fraud control tools. More information about BIPS is available at http://www.ibips.com .
About Cash Technologies
Cash Technologies, Inc. develops and markets innovative data processing solutions in the healthcare and financial services industries. Its CashTechCard Systems, Inc. subsidiary establishes and manages debit card programs and issues prepaid debit cards that require no bank account but can be used at millions of merchant and ATM locations around the world -- learn more at http://www.CashTechCard.com. Cash Tech's ClaimRemedi Services, Inc. subsidiary creates and markets healthcare and employee benefits data processing solutions. For more information, visit http://www.claim-remedi.com or http://www.cashtech.com .
Matters discussed in this release include forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include technical barriers that prevent the implementation or success of Cash Tech's technologies and products, competition within the debit card, employee benefits and healthcare industries, activity levels in the securities markets and other risk factors disclosed in Cash Tech's reports to the Securities and Exchange Commission, including its Forms 10-QSB and Forms 10-KSB on file with the SEC.
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