Operational Funding Deal Benefits Smart Chip Technologies
Monday April 10, 9:45 am ET
LAS VEGAS--(BUSINESS WIRE)--April 10, 2006--Smart Chip Technologies (OTC:SCTN - News) is pleased to announce that it has entered into an agreement with Phoenix Technology Holdings Incorporated ("Phoenix"). Phoenix will fund the operational costs required to deploy the SCTN technology commercially by paying costs including hosting, development, sales, and client implementation. Airos Group and other SCTN debt holders are in the process of assigning approximately US$10M of their existing debt to Phoenix in exchange for an equity position in Phoenix.
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In exchange for an exclusive, performance-based agreement with SCTN, Phoenix contracted to pay SCTN a fixed percentage of SCTN-related revenue, stop interest accrual on the SCTN debt, and forgive the SCTN debt after generating US$10M in revenue to SCTN. The agreement will allow SCTN to stop accruing debt, reduce the ongoing dilution of stock, and get funding indirectly to supplement existing recurring revenues.
About Phoenix Technology Holdings Incorporated
Phoenix Technology Holdings and its subsidiaries provide hosting, development, sales, client implementation, and system support for financial services products, allowing clients to deploy sophisticated solutions easily and quickly.
About Smart Chip Technologies (OTC:SCTN - News)
Smart Chip Technologies' turnkey customer retention solution, including Loyalty, Pre-Paid Stored Value, Punch Cards, and Gift Cards enables issuers, acquirers, and merchants to take advantage of real-time programs using their cardholder's existing cards using bar codes, magnetic stripes, smart chips, RFID, Internet accounts, and other consumer electronic devices. The SCTN system is a scalable, high performance, end-to-end solution that uses an ASP model to customize the system's look and feel to reinforce customer branding. (www.sctn.com)
