Attached files
| file | filename |
|---|---|
| 8-K - TECHNEST 8-K - ACCEL BRANDS, INC. | technest_8k-102909.htm |
| EX-10.1 - SETTLEMENT AGREEMENT - ACCEL BRANDS, INC. | technest_8k-ex1001.htm |
Exhibit 99.1
Press
Release
Technest
Announces Settlement Agreement with EOIR Holdings for up to $23
million
Bethesda, MD October 29, 2009 – On October 26, 2009, Technest Holdings, Inc. (OTCBB:TCNH) entered into a settlement agreement with EOIR Holdings, LLC and EOIR Technologies, Inc. (“EOIR”), settling all claims related to the Stock Purchase Agreement which the parties entered into in 2007 to effectuate the sale of EOIR, a subsidiary of Technest at the time.
Pursuant
to the agreement, EOIR Holdings, LLC will pay Technest $18,000,000 no later than
December 25, 2009 and an additional $5,000,000 within sixty days of EOIR being
awarded a contract under the Warrior Enabling Broad Sensor Services Indefinite
Delivery Indefinite Quantity (ID/IQ) contract or any contract generally
recognized to be a successor contract to its current STES contract. The
additional $5,000,000 is also payable to Technest in the event that EOIR is
awarded task orders under its current STES contract totaling
$495,000,000. EOIR has guaranteed the performance of the obligations
of EOIR Holdings under the settlement agreement. The settlement agreement was
entered into in the wake of a previously reported binding arbitration decision
awarding Technest $23 million for breach of the Stock Purchase Agreement between
the parties.
Gino
Pereira, the Chief Executive Officer of Technest, stated, “We are very pleased
that we were able to enter into this settlement agreement. We believe
that notwithstanding the arbitration decision in August, it was in the best
interest of Technest’s shareholders to avoid any further litigation or
challenges to the arbitration decision while at the same time preserving the
Company’s ability to collect the entire award.”
As previously announced, upon receipt of the first tranche of $18,000,000, Technest will declare a dividend and distribute a minimum of 90% of the net proceeds after setting aside reserves for payment of existing obligations. If the additional $5,000,000 is received, the Company intends to distribute the net proceeds in a manner consistent with the $18,000,000 tranche.
About
Technest Holdings, Inc.
Technest
Holdings, Inc. is a provider of: advanced remote sensor systems, intelligent
surveillance and advanced 3D imaging technology solutions to the defense,
homeland security and healthcare marketplaces. Technest is committed to setting
next-generation imaging standards through the provision of innovative emerging
technologies. Through strategic development, Technest focuses on the creation of
dual-use technology and products with applications in healthcare as well as the
fields of defense, civilian homeland security and law enforcement. For more
information, please visit the company's website at http://www.technestinc.com.
Safe
Harbor
Investors
are cautioned that certain statements contained in this press release are
"forward-looking" statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include
statements which are predictive in nature, which depend upon or refer to future
events or conditions, which include words such as "expects," "anticipates,"
"intends," "plans," "believes," "estimates," or similar expressions. In
addition, any statements concerning the anticipated proceeds, future financial
performance (including future revenues, earnings or growth rates), and possible
future actions, which may be provided by management, are also forward-looking
statements as defined by the Act. Forward-looking statements are based upon
current expectations and projections about future events and are subject to
risks, uncertainties, and assumptions about Technest Holdings, its products,
economic and market factors and the industries in which Technest Holdings does
business, among other things. These statements are not guarantees of future
performance and Technest Holdings has no specific intention to update these
statements. More detailed information about those factors is contained in
Technest Holdings' filings with the Securities and Exchange Commission. http://www.sec.gov
Contact:
Stanley
Wunderlich
CEO
Consulting
for Strategic Growth 1
T:
1-800-625-2236
F:
1-646-205-7771
Email:
Email Contact
Web site:
www.cfsg1.com