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MAI Settles Dispute Over Acquisition

February 23, 2001|Dow Jones

MAI Systems Corp. said Thursday it has settled its $6.9-million dispute regarding its acquisition of CSA Holdings Ltd.'s stake in Hotel Information Systems.

Irvine-based MAI Systems acquired Hotel Information Systems in August 1996, and had an obligation to issue an unlimited number of shares of its common stock until CSA had recovered $6.9 million in cash.

Under the settlement, MAI will issue a $2.8-million subordinated secured note and issue 1.9 million shares of common stock. The shares would be worth $1.16 million at Thursday's closing price of 61 cents on the American Stock Exchange.

MAI, which installs data systems primarily for the hospitality, gaming and manufacturing industries, said payments on the note won't begin until March 2002.

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