Creative Realities announces Reflect settlement agreement

Creative Realities (CREX) announced that it settled and resolved its dispute with former stockholders of Reflect Systems related to the Company’s obligation to pay to former Reflect stockholders contingent supplemental cash payments under the terms of the Company’s merger with Reflect. The settlement terminates and releases the Company’s obligation to pay the Guaranteed Consideration in exchange for: a cash payment of $3 million; a $4 million, 30-month promissory note; and the issuance of certain warrants to purchase common stock of the Company. The Note is an unsecured obligation of the Company that accrues interest at a rate of 14.0% per annum, and requires the Company to make a balloon payment of $2.3 million on the maturity date, September 14, 2027. A more detailed description of the settlement and settlement documents are included in a Current Report on Form 8-K of the Company being filed with the SEC.