ALBUQUERQUE, N.M., Nov. 3, 2009 (GLOBE NEWSWIRE) -- AccessKey IP, Inc. (OTCBB:AKYI), the developer, designer and producer of advanced entertainment and communication devices, today announced it has successfully completed negotiations and has rewritten its delinquent convertible notes and eliminated onerous interest rates.
"This is the first step to completely eliminate the toxic convertible notes and legacy issues of the Company," said Bruce Palmer, AccessKey IP Inc. President. "The immediate benefit is to place the company in a 'current' position with its note holders and remove the delinquency status. A reduction of various balance sheet liabilities as well as a decrease in interest expense will be effective between September and October and have been accomplished without the issuance of additional shares."
"We were precluded from rewriting notes held by the Nutmeg Group, as they are currently under investigation by the SEC and have relinquished control to a Receiver," said Palmer. "This turn of events benefits our position as our liabilities within said agreements are frozen and we are confident we will be positioned to settle these specific notes for less than face value."
Having increased its authorized shares to a level perhaps perceived as excessive, the Company believes the importance lies in the ability to utilize available shares for capital requirements. This increase results in restricted Regulation 144 shares and should certainly quell any unfounded allegations of selling stock into the market.
"As announced previously, the $300,000 funding transaction has begun, said Palmer. "These transactions offer low interest rates, three-year terms and are based on common stock as collateral. These shares will increase our outstanding but will not hit the market, there is no dilution to shareholders and will be retired when the note is paid."
About AccessKey IP, Inc.
AccessKey IP, Inc. is a developer of cutting-edge technologies and best-of-breed products tailored to address the market opportunities created by the explosive growth of digital communications, entertainment-related services and specific consumer electronics platforms. AccessKey IP's AccessKey(TM) products, powered by the Company's patented technology, provide complete access to the coveted "Triple Play" Set Top Box (voice, video and data) and "Quadruple Play" Set Top Box (voice, video, data and wireless) offerings of cable, telecom, satellite and broadband service providers. The Company's AccessKey Home(TM) and portable flash drive-sized AccessKey PC(TM) allow subscribers to "channel surf" streaming "HD Quality" television content (IPtv), navigate the internet, watch Video on Demand (VOD) offerings, play video or internet-based games, listen to music, make phone calls (VoIP), video conference, run a full array of computing applications, securely store data and more, all from a single device and provider network. Its wholly owned subsidiary TeknoCreations was founded to participate in the explosive growth of Consumer Electronics. TeknoCreations designs high quality products with attractive pricing to enhance the consumer's favorite electronics products and the expanding security needs of corporate America.
The AccessKey IP logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4945
Forward-Looking Statements
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of AccessKey IP, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Please visit the Company's websites: www.accesskeyip.com, www.teknocreations.com