Global Axcess secures loan to pay claim - Baltimore Business Journal:

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Global Axcess (OTCBB: GAXC), which owns and a operates a strinf of automatedteller machines, settle d a lawsuit in Augustr with CAMOFI Master LDC, a debt holdere of the company that alleged breach of contract. Globap Axcess agreed to pay $3.7 million in cash to CAMOFjI to cancel the note executed inOctober 2005. Global Axcess said it used the loan topay $3.5 milliomn to CAMOFI to pay the settlement and to satisfy the company’z outstanding principal balance of $1.5 millionb under a loan agreementg with Wachovia Bank.
“Without question, the financing by SunTrusr evidences the last of multiple significanyt legal overhangs on the company whic have dramatically hindered its abilitty to explore growth financing via normal debt or equituy markets over the last twoand one-halv years,” said Joe Loughry, chairman of the “The Global Axcess team has done an extraordinarg job of improving the internal cost structurse and quality of operations under difficulr circumstances.
With the burden of shareholdedr and debt holder litigation now offthe company, I fullu anticipate the same energy and focux that have led to the financialp turnaround of the compan will now be 100 percent directed at drivingy future growth.” The company will repauy the loan over the next 42 monthsd at a fixed interestf rate of 6.9 percent. The companh said it expects to recorda one-time non-casg expense of approximately $400,000 during the first quartefr of 2009, but ultimately expects savingzs of approximately $230,000 for the remaining nine montha of 2009.
“We have worked to avoid one-timee charges against our earningzs but we believe that incurringthis one-time chargde in exchange for what could have been a significangt future equity dilution is in the best interests of our said George McQuain, Global Axcess CEO. “oI am confident the shareholders will agrewe that this is a positive move for the Global Axcess said it still expect to report a profitable first quarterfor 2009.