SAFLINK Corp. (SFLK)

[ftb]

8-K today-starting to pay debt in cash

http://phx.corporate-ir.net/phoenix.zhtml?c=63232&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2...

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On June 29, 2007, we notified the debenture holders that we would be paying the July 2007 redemption amount due in a combination consisting of 50% cash and 50% shares of our common stock. On July 2, 2007, we issued 6,953,628 shares of our common stock to the debenture holders, which when added to the 972,248 shares of our common stock that we issued to current debenture holders on June 4, 2007, represents an aggregate of 7,925,876 shares of our common stock issued in payment of 50% of the $437,508 July 2007 monthly redemption amount. The other 50% of the July 2007 redemption amount, or $218,754, was paid in cash.

In addition, on June 29, 2007, we notified the debenture holders of our election to pay future interest payments under the debentures in cash until revised by a subsequent notice. Therefore, no shares of common stock were issued for the July 1 interest payment.

Lastly, we did not elect to pay the debenture holder in shares of common stock for the monthly redemption amount due on August 1, 2007. As a result, we are not obligated to issue any shares of our common stock to be applied against the August 2007 monthly redemption amount.