BSIO filed 8K:
The company has signed, on May 7, 2004, an agreement with Mudengu Resources
Holdings (Proprietary) Limited, as a first step toward establishing a major
banking system for rural South Africa. Mudengu, headquartered in Johannesburg,
is a South African holding company with subsidiaries active in mining and
exploration, technologies, investments, energy and logistics, and property and
facilities management.
The agreement with Mudengu establishes a new joint venture company to
create a series of banks in South Africa, based on the company's MicroBanker
2000 (tm) technology, a specific software and hardware system designed for
optical card-based microbanking applications.
Under the agreement, Mudengu and the company have incorporated Vhuthu
Investments (Proprietary) Limited, which is to become chartered under South
African law to act as a holding company to create banking entities throughout
South Africa, to provide financial services to the populations of South Africa
that currently operate in cash and barter economies. Services are expected to
begin with basic savings and cash debit services, and in the future possibly
including loans. It is expected that Vhuthu will work closely with the two
million-member United African Apostolic Church.
Vhuthu is owned 49% by the company and 46% by Mudengu; the 5% balance will
be allocated to a Black Economic Empowerment Entity, owned and/or controlled by
Black people in South Africa, which entity is required to be an intended
beneficiary under policies and programs established by South Africa.
The agreement with Vhuthu is subject to fulfillment of the following
conditions precedent:
o Confirmation of Vhuthu's compliance with the requirements of the Reserve
Bank of South Africa and other banking laws in South Africa.
o Receipt by Vhuthu of $1,250,000 in financing from the Overseas Private
Investment Corporation ("OPIC"). $800,000 of this funding will be
applied to pay for Vhuthu's initial order of MicroBanker 2000 (tm)
hardware and software.
o Finalization of a ten year exclusive license agreement for Vhuthu to
resell, in South Africa, the company's MicroBanker 2000 (tm) hardware
and software technology and optical cards. Under this agreement, when
finalized, Vhuthu will have the right to sublicense banking software to
customers of Vhuthu's choosing anywhere in South Africa. When finalized,
this license (including sublicense rights) may be terminated in May 2007
if the company by then does not realize revenues of at least $1,000,000
from sales thereunder.
o Finalization of a ten year exclusive license agreement for Vhuthu to
resell, in South Africa, Democratic Republic of Congo, and Zambia, all
of the company's other products. This license, when finalized, may be
terminated in May 2007 if the company by then does not realize revenues
of at least $1,000,000 from sales under this license.
o Finalization of a supply and support services agreement between the
company and Vhuthu for the company's continued sale of its products and
services. This agreement will be prepared in accordance with Vhuthu's
business plan and approved budget.
Neither the agreement with Mudengu, nor the license agreements (when
finalized) with Vhuthu, will result in any change to the company's ownership of
its technology.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BSI2000, Inc.
Dated: May 21, 2004 By: /s/ Jack Harper
---------------------------
JACK HARPER,
President and
Chief Executive Officer
