News

ObjectSoft-Golden Screens merger off

March 21, 2002

Company considering bankruptcy protection

HACKENSACK, N.J. - ObjectSoft Corp. (OTC Bulletin Board: OSFT.OB), a U.S. video entertainment kiosk provider, terminated a non-binding letter of intent to merge with New York-based Golden Screens Interactive Technologies Inc. Golden Screens also makes interactive kiosks, according to an ObjectSoft news release.

Michael Rudolph, chairman and chief executive officer of ObjectSoft Corp., said, "The management of Golden Screens and myself have worked hard over the last six weeks to conduct due diligence and reach a definitive merger agreement as called for in the letter of intent. However, during this time period, the nature of the transaction appears to have changed substantially from what was contemplated in the original letter of intent."

According to Rudolph, "Certain investors who had indicated an interest in contributing capital to ObjectSoft Corporation have now declined to participate in further financing of our company.'

As a result of the termination of the letter of intent and the lack of additional financing, ObjectSoft is now reviewing various alternatives, including finding other sources of capital funding as well as seeking protection from creditors afforded under bankruptcy law. Additionally, ObjectSoft has furloughed employees and taken other measures to conserve cash, the release stated.

KIOSKmarketplace reported recently that companies providing public Internet access kiosks and gaming kiosks have suffered due to the same economic conditions that affected dot-coms (see "Kiosk companies feeling effects of slowdown"). Companies have faced problems obtaining expected advertising revenue, partly due to unrealistic business plans, the article stated.

Michael Burak has tendered his resignation from the board of directors effective July 9. The release said the resignation was unrelated to the Golden Screens deal falling through.

In April Objectsoft reported that its stock had been delisted from the NASDAQ SmallCap Market. Its stock has been trading in the one-half cent range.

Founded in 1990, ObjectSoft provides information and transactional services through public access kiosks. The company's FastTake kiosk allows users to search and review movie titles, sample movie trailers and purchase other goods and services from the kiosk located in high-traffic retail locations.