Attached files
| file | filename |
|---|---|
| 8-K - WORKSTREAM INC | fp0001198_8k.htm |
| EX-4.1 - WORKSTREAM INC | fp0001198_ex4-1.htm |
| EX-10.4 - WORKSTREAM INC | fp0001198_ex10-4.htm |
| EX-10.3 - WORKSTREAM INC | fp0001198_ex10-3.htm |
| EX-10.6 - WORKSTREAM INC | fp0001198_ex10-6.htm |
| EX-10.5 - WORKSTREAM INC | fp0001198_ex10-5.htm |
| EX-10.1 - WORKSTREAM INC | fp0001198_ex10-1.htm |
| EX-10.2 - WORKSTREAM INC | fp0001198_ex10-2.htm |
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Workstream
Closes Note Exchange and Restructuring With Holders of its Secured
Notes
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MAITLAND,
Fla., Dec. 14, 2009 (GLOBE NEWSWIRE) -- Workstream Inc. (OTCBB:WSTM), a
leading provider of on-demand compensation, performance and talent
management solutions, today announced that it has entered into separate
Exchange Agreements with each of the holders of its $19 million in senior
secured promissory notes pursuant to which, among other things, each
holder exchanged its senior secured note for:
(i)
a new senior secured non-convertible note for $9.5 million, (50% of
outstanding notes) interest accrues at an annual rate of 9.5%, compounds
quarterly basis and is payable, together with principal, on the maturity
date, which is July 31, 2012 for all of the notes; (ii) a senior secured
convertible note that is convertible into the Company's common shares at a
conversion price of $.25, for $6,650,000 (35% of outstanding notes); and
(iii) a senior secured convertible note that is convertible into the
Company's common shares at a conversion price of $.10, for $2,850,000 (15%
of outstanding notes).
"In
summary, we have extended the maturity of our notes out 32 months to July
2012, provided an equity feature to our note holders allowing the Company
more time to build our business with them, and as partners, share in our
success while we continue to grow," said Michael Mullarkey, Chief
Executive Officer.
Mr.
Mullarkey further stated that, "Our note holders have been working with us
in an effort to improve our balance sheet and create long-term value. One
of our note holders, increased their ownership, and now owns more then
half of the notes, understanding the growing market in SaaS Software and
the strong products and customers Workstream serves. We can now move the
Company forward with a new management team, balanced capital structure and
a focus on our business."
The
aggregate principal amount of the notes issued pursuant to the Exchange
Agreements with the Company's note holders is $21,511,000. Each note is
secured by a lien on all of the assets of the Company and its
subsidiaries. Interest on each Note accrues at an annual rate of 9.5%.
Interest on the convertible notes compounds on a quarterly basis and is
payable, together with principal, on the maturity date, which is July 31,
2012 for all of the notes. Interest on the non-convertible notes compounds
on a quarterly basis and is payable on the maturity date, while principal
is payable on a quarterly basis pursuant to an agreed upon schedule. Upon
the occurrence of an event of default, as defined in the notes, a holder
may require the Company to redeem all or a portion of such holder's notes.
Upon a disposition of assets or liquidity event (each as defined in the
notes), the Company is required to use 100% of the net proceeds to redeem
the notes. Each note contains customary covenants with which the Company
must comply. Each subsidiary of the Company has agreed to guarantee the
obligations of the Company under each note. More details will be in the
Company 8K.
About
Workstream
Workstream
provides on-demand compensation; performance and talent management
solutions and services that help companies manage the entire employee
lifecycle -- from recruitment to retirement. Workstream's Talent Center
provides a unified view of all Workstream products and services including
Recruitment, Performance, Compensation, Development and Transition. Access
to Talent Center is offered on a monthly subscription basis under an
on-demand software delivery model to help companies build high performing
workforces, while controlling costs. With offices across North America,
Workstream services customers including Chevron, Kaiser Permanente and
Nordstrom. For more information visit www.workstreaminc.com or call toll
free 1-407-475-5500.
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The
Workstream, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6175
Cautionary
Note Regarding Forward-Looking Statements
This
press release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. These statements are based on the current expectations or
beliefs of Workstream's management and are subject to a number of factors
and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The following
factors, among others, could cause actual results to differ materially
from those described in the forward-looking statements: failure to
negotiate the final terms of definitive agreements giving effect to the
proposed note restructuring; in the event a restructuring of our
indebtedness is not consummated, if an event of default should occur and
be continuing with respect to such indebtedness; inability to grow our
client base and revenue because of the number of competitors and the
variety of sources of competition we face; client attrition; inability to
offer services that are superior and cost effective when compared to the
services being offered by our competitors; inability to further identify,
develop and achieve success for new products, services and technologies;
increased competition and its effect on pricing, spending, third-party
relationships and revenues; as well as the inability to enter into
successful strategic relationships and other risks detailed from time to
time in filings with the Securities and Exchange Commission
CONTACT: Workstream,
Inc.
Ginger Simpson
1-407-475-5500
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