FNDS3000 Corp, an international prepaid processing company currently introducing electronic payment solutions to the South African market, announced that it has closed on a $500,000 private placement, which represented the third scheduled tranche of the $2.5 million, non-brokered equity financing agreement entered into in October 2010.
This financing was led by Sherington Holdings, LLC, a private investment company, whose Chairman and CEO, Raymond Goldsmith, is also Chairman and CEO of FNDS3000. When coupled with the related financings completed in October 2010 and January 2011, this financing brings the total amount of capital received to date under the October commitment agreement to $2 million. The final tranche of $500,000 is expected to be closed on or before July 1, 2011. Proceeds from the private placements are intended to be used as working capital to support continued growth of FNDS3000’s South African prepaid card business.
Pursuant to the terms defined in the agreement, the $500,000 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 3,597,122 shares of restricted common stock priced at $0.139 per share. In addition, for each common share purchased, the investors received a two-year warrant to buy one share of common stock at an exercise price 200% of the offering price equaling $0.278 per share.
Joe McGuire, CFO of FNDS3000 noted, “Today’s $500,000 financing, executed at the current market value, supports and accelerates the ongoing roll-out of our prepaid card solutions in South Africa. Our team in South Africa continues to issue and activate thousands of prepaid cards for new cardholders every month, confirming that our growth strategy remains firmly on the mark, as we persist in our efforts to build our prepaid business, increase our revenues and ultimately achieve positive cash flow from our operations.”
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.
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, or follow us on Twitter @_FNDS3000.