DataLogic International allegedly defaults on 10% convertible notes

By Sheri Kasprzak

New York, March 6 - DataLogic International, Inc. has allegedly defaulted on its 10% secured convertible promissory notes held by Laurus Master Fund, Ltd.

The company, according to an 8-K filed Tuesday with the Securities and Exchange Commission, failed to make its February 2007 principal and interest payments on the notes, which are due Oct. 31, 2008.

"DataLogic does not have sufficient funds available and does not expect to generate sufficient cash flow from operations to meet its ongoing obligations under the Laurus secured term note or the 10% secured convertible promissory notes," the company said in the 8-K.

"DCI does not have sufficient funds available and does not expect to generate sufficient cash flow from operations to meet is ongoing obligations under its outstanding promissory notes."

The company has also neglected to file a registration statement with the SEC covering the resale of shares under the convertible notes, according to the 8-K.

Under the default terms of the note, Laurus may accelerate the payment of the notes. So far, DataLogic has not received any notice of payment acceleration, according to the SEC filing.

"In the event of any acceleration of these obligations, DataLogic could be forced to restructure or to default on its obligations or to curtail or abandon its business plan, any of which may devalue or make worthless an investment in DataLogic," the 8-K said.

Based in Irvine, Calif., DataLogic develops global positioning system-based mobile asset tracking used by governmental agencies and commercial concerns.

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