JACKSONVILLE, Fla.,
May 18, 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 fourth and final tranche of the $2.5 million, non-brokered equity financing
agreement entered into in October
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.
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