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FNDS3000 Closes on Final Tranche of $2.5M Financing
Posted May 18, 2011
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$500,000 Supports Growth of South African Prepaid Card Business
JACKSONVILLE, Fla. -- FNDS3000 Corp (OTCQB: FDTC), an international prepaid processing company currently introducing electronic payment solutions to the South African market, today announced that it has closed on a $500,000 private placement, which represented the fourth and final tranche of the $2.5 million, non-brokered equity financing agreement entered into inOctober 2010.
The $500,000 financing was led by Sherington Holdings, LLC, a private investment company, whose Chairman and CEO, Raymond Goldsmith, is also Chairman and CEO of FNDS3000.
Pursuant to the terms defined in the agreement, the financing was valued at the average closing market price of the Company's common stock for the ten trading days prior to the closing date. FNDS3000 will issue 3,333,334 shares of restricted common stock priced at $0.15 per share. In addition, for each common share purchased, the investor received a two-year warrant to buy one share of common stock at an exercise price 200% of the offering price equaling $0.30 per share.
Joe McGuire, CFO of FNDS3000 noted, "We are extremely pleased to announce the successful culmination of this capital raise. Today's financing was executed at our current market value and keeps our balance sheet free from any long-term debt. The $500,000 financing supports our focus to build our prepaid business, increase our revenues and ultimately achieve positive cash flow from our operations. As previously stated, there will be a need to secure additional funds to cover operational expenses as we work towards positive cash flow and we cannot today provide any guarantee that we will successfully close such financing or that such financing, if closed, will be on reasonable terms. However, with over $15 million previously raised, we are cautiously optimistic that we will obtain the necessary funding required to grow the Company."
The Company has offered and sold and will offer and sell the Common Stock and Warrants in the above noted financings to qualified accredited investors in transactions exempt from the registration requirements of the Securities Act of 1933, as amended, and have not been registered under the Securities Act or any state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. For more detailed information relating to this matter, please refer to the Company's Form 8-K filed with the U.S. Securities and Exchange Commission later today.
About FNDS3000 Corp
Headquartered in the U.S. with operations in South Africa, FNDS3000 Corp is engaged in executing a series of international growth initiatives designed to position the Company as a major player in the world's fastest growing payment card segment: prepaid cards. Given that 40% of the adult population in South Africa is currently unbanked or underbanked, FNDS3000's initial focus has concentrated on offering tailored prepaid card programs and services to business customers in this developing prepaid market, including network branded and closed loop programs that support employee payroll, insurance, medical aid, gift cards, prepaid cellular charges and small-scale international transfer of funds. The Company provides these programs and services through a proven, proprietary U.S. processing platform that has been designed for international and cross border capability. For more information, please visit www.FNDS3000.com.
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