Sequiam in default on $8.08 million of term notes

By Devika Patel

Knoxville, Tenn., Jan. 28 - Sequiam Corp. is in default on its interest payments for the $8,075,521 outstanding term notes it issued to Biometrics Investors, LLC in a private placement on March 30, according to an 8-K filed with the Securities and Exchange Commission.

According to the filing, Biometrics issued a written notice dated Jan. 22 to the company saying that Sequiam owes $42,571 in interest on the notes. Biometrics is demanding immediate payment.

Under the private placement agreement, the company had five days from the notice date to prevent an event of default. Sequiam was unable to pay the default by Jan. 27, so interest now will accrue at the default rate of 16%.

Moreover, because an event of default has occurred, all of the notes' principal and interest is now due and payable. Biometrics also may take possession of the notes' collateral, which consists of substantially all of the company's assets, and liquidate the collateral.

Sequiam, based in Orlando, Fla., develops software and hardware that allows users to acquire and manage information over the internet in a secure environment.

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