Creative Realities, Inc. (CREX), a provider of digital signage and AdTech solutions, Monday announced that it has settled and resolved its dispute with former stockholders of Reflect Systems, Inc. over contingent cash payments owed under their merger agreement.
Shares of Creative Realities are dropping in the pre-market trading.
As part of the settlement, the company is no longer required to pay the Guaranteed Consideration.
Instead, it will make a $3 million cash payment, issue a $4 million unsecured promissory note with a 14% annual interest rate, and provide certain warrants to purchase company stock.
The note requires a final balloon payment of $2.3 million by its maturity date on September 14, 2027.
CEO Rick Mills said, "...We are very pleased with this development that allows us to focus on expansion and improved operating results for the remainder of fiscal 2025."
In the pre-market trading, Creative Realities is 9.57% lesser at $1.70 on the Nasdaq.
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