Business
Amendment to Agreement
Amendment to Agreement.
About this update from Datatrak International, Inc.
[{"type":"text","content":"Datatrak amended its earlier agreement with Tabatabai Investment Partners LP (“Fund”) as of October 6, 2021 in order to facilitate certain business objectives. Under the original agreement, dated January 19, 2021, Datatrak purchased 500,000 shares of the common stock of CreditRiskMonitor.com at $1.40 per share. Despite the parties’ best efforts, transferring the physical shares of stock was a complicated and slow process that had no clear timeline for completion due to various third parties who control the transfer process. Due to the unknown future timetable for completion and the disadvantages this uncertainty provided, the parties explored alternatives for expediting the process. The alternative the parties agreed upon meets the following goals for Datatrak: 1) speeding up the process by which Datatrak receives cash; 2) determining a fixed amount of cash and fixed timing for the receipt of cash for Datatrak; 3) eliminating Datatrak's exposure to the risk of price fluctuations of the underlying shares of common stock; along with others. Per the amended agreement, Datatrak will sell back the 500,000 shares of the common stock of CreditRiskMonitor.com to Fund at a price of $1.40 per share. Fund will owe the aggregate principal amount of $700,000 to Datatrak and additionally interest accruing as of January 29, 2021 on the principal amount at a rate of 10% per annum due by January 28, 2022. The parties agreed to reasonably work together to determine payment schedules and amounts in order to optimize time and cost efficiencies for the parties. Payments have commenced and are expected to continue through the term of the agreement.","length":1661,"tagName":"div"}]