In a recent development, Cuentas Inc., a wholesale distributor of groceries and related products, has terminated a material definitive agreement with Interactive Communications International, Inc. (InComm). The termination, effective as of Monday, was officially documented in a report filed with the SEC today.
The original Processing Services Agreement, initiated on July 23, 2019, was concluded with a mutual understanding between the parties. As part of the termination, InComm has agreed to waive an outstanding debt of $475,000 that Cuentas owed due to unpaid Monthly Minimum Fees since December 2022.
Cuentas has been instructed by the Issuing Bank to cease the Prepaid Product program it managed. In compliance, InComm will destroy all remaining un-issued Prepaid Products and related collateral. Both Cuentas and InComm have agreed to cooperate with the Issuing Bank to ensure an orderly unwinding of the Prepaid Product program.
Despite this termination, Cuentas will maintain its Digital Content and Distribution Agreements with InComm, focusing on markets such as transportation, bodega, and cellular services.
The financial implications of this termination are significant for Cuentas, as the waiver of the substantial debt will likely affect its financial position. The company's stock, traded on The Nasdaq Stock Market LLC under the ticker CUEN and CUENW for its common stock and warrants respectively, may respond to this news in the coming days.
In other recent news, Cuentas Inc. reported that a deal to sell its Brooksville, Florida property has been terminated by the buyer. Originally acquired in 2023 for $5.05 million, the property was under contract to be sold for $7.2 million.
The company had contributed $2 million to the original purchase price and approximately $65,000 towards engineering expenses. Cuentas also executed a $500,000 Loan Extension Agreement to fund the interest reserve, fees, and the working capital needs of the company.
The property is held by a joint venture, Brooksville Development Partners, LLC, where Cuentas holds a 63% membership interest. Despite the setback, Cuentas is not restricted from offering the property to other potential buyers or developers, as confirmed by a press release statement filed with the SEC.
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