JACKSONVILLE, Fla.,
Oct. 20 /PRNewswire-FirstCall/ --
FNDS3000 Corp (OTC Bulletin Board: FDTC), an international prepaid
processing company currently introducing electronic payment
solutions to the South African market, today announced the signing
of a $2.5 million non-brokered equity
financing agreement that is intended to be closed in four tranches
over a nine month period. The first tranche of $1 million was closed on October 19, 2010; the three follow-on financings,
equal to $500,000 each, are scheduled
to occur on or about January 31,
2011, April 1, 2011 and
July 1, 2011.
The financing was led by Sherington Holdings, LLC, a private
investment company, with participation by other current accredited
shareholders of FNDS3000. Raymond
Goldsmith, Chairman and CEO of FNDS3000, also serves as
Chairman and CEO of Sherington Holdings, LLC. Collectively,
Sherington and Goldsmith purchased approximately 99% of the initial
$1 million private placement.
The terms of the initial $1
million financing provided for the sale of 5,714,286
restricted shares of FNDS3000's common stock to the investors at a
price of $0.175 per share; and the
issuance of a two-year warrant to purchase up to 5,714,286
restricted shares of common stock at an exercise price of
$0.175 per share.
"This financing, in conjunction with recently announced
cost-saving initiatives, represent mission-critical elements of our
strategy to support and accelerate the ongoing production roll-out
of our prepaid card solutions to the South African market. In
view of our shared belief that FNDS3000's prevailing share price is
not reflective of the intrinsic value in the Company, Sherington's
decision to lead this first $1
million investment at a premium to the current market price
for our stock demonstrates the strong level of confidence it has in
FNDS3000's ability to execute our business model and deliver strong
performance over time," noted Goldsmith.
Terms of the follow-on financings provide for the investors to
purchase shares of common stock at the lesser of $0.175 or the average trading price of the
Company's common stock for the ten trading days prior to the
closing date of each financing. Although the investors are
contractually obligated to purchase $500,000 of common stock in each of the scheduled
follow-on financing transactions, the actual amount to be raised
will be determined by the Board of Directors based on the financing
needs of the Company at that time. In addition, for each
share purchased, the investors shall receive a two-year warrant to
buy one share of common stock, exercisable at 200% of the offering
price of shares related to each follow-on financing
transaction.
Continuing, Goldsmith added, "Now that we have effectively
satisfied our working capital requirements for the coming year, we
are now free to concentrate solely on implementing
business-building strategies aimed at securing FNDS3000 leadership
in the global prepaid card market."
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
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