JACKSONVILLE, Fla.,
March 9, 2011 /PRNewswire/ --
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 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.
Forward Looking Statements
Matters discussed in this press release contain forward
looking statements. Investors are cautioned that such forward
looking statements involve risk and uncertainties, which could
significantly impact the actual results, performance, or
achievements of the Company. Such risks and uncertainties
include, but are not limited to, the potential loss of our
relationships with each of the parties that sponsor our cards and
banks that manufacture, issue, and own the cards; the loss of our
service providers; security breaches of our electronic information;
the inability to raise sufficient capital to fund its operations;
and other risks as may be detailed from time to time in the
Company's periodic reports filed with the Securities and Exchange
Commission. The Company assumes no obligation to
publicly update or revise its forward looking statements even if
experience or future events make it clear that any of the
projected results expressed or implied herein will not be
realized.
SOURCE FNDS3000 Corp