Investors Rose Glen Capital and Palladin have agreed to restructure their warrant and debt agreements with CyberCash enabling the proposed merger with Network 1 Financial to go through.
CyberCash founder and chairman Bill Melton quit the company last week following tense negotiations with investors who found themselves sitting on a pile of CyberCash stock after the company's share price nose dived from over $10 to under $1 towards the year end.
Under a deal struck late last week, Rose Glen and Palladin have agreed to settle for 7.7 million shares of CyberCash common stock in exchange for cancelling all warrants - which would have entitled them to over 15 million shares in the stricken company.
With the threat of stock dilution removed, the proposed all-share transaction for the acquisition of Network 1, announced in December, can now proceed as planned.