Global Axcess Corp Secures Asset Purchase Agreement with FCTI
JACKSONVILLE, Fla., Aug. 6, 2013
JACKSONVILLE, Fla., Aug. 6, 2013 /PRNewswire/ -- Global Axcess Corp (OTC
Bulletin Board: GAXC; the "Company"), a leading provider of ATM services and
DVD self-service kiosks, announced today that it entered into as Asset
Purchase Agreement with a "stalking horse bidder," Financial Consulting &
Trading International, Inc. ("FCTI") a wholly owned subsidiary of Seven Bank,
Ltd., to acquire substantially all of the assets of the Company's ATM
operating business. The DVD assets will be sold under a separate process.
The ATM business sale will potentially allow the Company to emerge with the
strong financial backing of a new owner with substantial experience in the ATM
To facilitate the sale, the Company and its business units have filed
voluntary petitions under Chapter 11 of the U.S. Bankruptcy Court for the
District of Nevada. The Company has obtained a commitment from Fifth Third
Bank for debtor-in-possession ("DIP") financing of approximately $1.5 million,
subject to Court approval.
The Company intends to continue operating its business without interruption
during the sale period and the Company remains confident in its existing
pipeline of business opportunities. The Company maintains relationships with
some of the top ATM industry service providers.
"The sale and filing are necessary next steps to complete the Company's
transformation and position the Company for the future, as we remain confident
in our existing pipeline of business opportunities and the strength of our
service offering," said Kevin L. Reager, President of the Company. "We are
grateful to our outstanding team of employees, partners and suppliers who have
worked with us through this transition. We are pleased to have attracted a
strong financial partner for our business, and we hope to complete the sale
swiftly to make the process as seamless as possible."
According to Sharon Jackson, who has been the Corporate Secretary since 1999,
"We have incredible, creative talent here at the Company. We look forward to
partnering with FCTI for a new start as we will continue to use our
intellectual property assets to develop high-quality ATM-related products and
FCTI has agreed to serve as the "stalking horse bidder" for the sale process,
which allows other interested parties to come forward with competing bids.
Aggregate consideration offered by FCTI for the purchase totals approximately
$10 million and the Company hopes to receive Bankruptcy Court approval to
consummate the sale as soon as possible.
Customers should see no changes while the Company completes a sale. The new
financing will support business operations throughout the period. The Company
does not intend to reduce its workforce as a result of the filing, and
employees will continue to work their usual schedules and receive normal
compensation and benefits, pending customary Court approval.
The Company is being advised by MorrisAnderson and Golding & Company as its
financial advisors and Smith, Gambrell & Russell as legal counsel. FCTI is
being advised by Skadden, Arps, Slate, Meagher & Flom as legal counsel.
About Global Axcess Corp
Headquartered in Jacksonville, Florida, Global Axcess Corp was founded in 2001
with a mission to emerge as the leading independent provider of self-service
kiosk services in the United States. The Company provides turnkey ATM and
other self-service kiosk management solutions that include cash and inventory
management, project and account management services. Global Axcess Corp
currently owns, manages or operates more than 4,900 ATMs and DVD kiosks in its
national network spanning 43 states. For more information on the Company,
please visit http://www.globalaxcess.biz.
Investor Relations Contacts:
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements may be identified by, among other things, the use of
forward-looking terminology such as: "believes," "expects," "may," "will,"
"should," or "anticipates," or the negative thereof or other variations
thereon or comparable terminology, or by discussions of strategy that involve
risks and uncertainties. Forward-looking statements give the Company's
current expectations or forecasts of future events, future financial
performance, strategies, expectations, competitive environment, regulation,
and availability of resources. The forward-looking statements contained in
this release include, among other things, statements concerning projections,
predictions, expectations, estimates or forecasts as to the Company's
business, financial and operational results and future economic performance,
and statements of management's goals and objectives and other similar
expressions concerning matters that are not historical facts. These statements
are subject to risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in or suggested by the
Other factors that could cause the Company's actual performance or results to
differ from its projected results are described in its filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. You should
not read forward-looking statements as a guarantee of future performance or
results. They will not necessarily be accurate indications of the times at or
by which such performance or results will be achieved. Forward-looking
statements speak only as of the date the statements are made and are based on
information available at the time those statements are made and/or
management's good faith belief as of that time with respect to future events.
The Company assumes no obligation to update forward-looking statements to
reflect actual results, changes in assumptions or changes in other factors
affecting forward-looking information.
The Company's shareholders are cautioned that trading in shares of the
Company's equity securities during the pendency of its Chapter 11 bankruptcy
proceedings is highly speculative and poses substantial risks. Trading prices
for the Company's equity securities may bear little or no relationship to the
actual recovery, if any, by holders in our Chapter 11 bankruptcy proceedings.
Accordingly, the Company urges extreme caution with respect to existing and
future investments in its equity securities. As previously disclosed in the
Company's risk factors set forth in its Form 10-K for the fiscal year ended
December 31, 2012, as a result of the Company's filing under Chapter 11 with
the Bankruptcy Court, it is expected that the Company's equity holders will
experience a complete loss of their investment.
SOURCE Global Axcess Corp
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