nFinanSe Inc. Raises $12.2 Million In Equity Transactions
Sep. 1, 2009 (Business Wire) -- nFinanSe Inc. (OTCBB:NFSE) (www.nfinanse.com) today announced that the Company has completed aggregate equity offerings totaling $12.2 million through the $6.5 million sale of approximately 2.2 million shares of its Series D Convertible Preferred Stock and through the exchange of $5.7 million of notes and accrued interest for approximately 1.9 million shares of Series D Convertible Preferred Stock. Each share of the Series D Convertible Preferred Stock is convertible into ten shares of the Company’s common stock at $0.30 per share. Each investor received warrants to purchase 10 shares of common stock at $0.01 per share for each share of Series D Convertible Preferred Stock.
Additionally, those Series D investors who invested an amount equal to or greater than 25% of the amounts invested in prior transactions involving stock or certain Accommodation Loans and Term Loans had the exercise price of any Company warrants held by such Series D investor reduced to (i) $0.30 per share of common stock, if they invested $100,000 or more or (ii) $0.01 per share of common stock, if they invested $250,000 or more.
Jerry R. Welch, Chairman and Chief Executive Officer, said, “Through these equity transactions, we have provided significant cash and equity to the Company and substantially improved our financial position. The prepaid card industry is still in the early stages of development and maintaining a solid balance sheet will be important for our Company as we participate in the industry’s growth.”
The Company had previously reported on its SEC filings that on August 21, 2009 it had closed on $10.9 million of equity through a $5.2 million sale and a $5.7 million exchange for notes. During the past 10 days, the Company said it sold an additional $1.3 million of its Series D Convertible Preferred Stock.
Emerging Growth Equities, Ltd. acted as placement agent for the offering.
About nFinanSe Inc.
nFinanSe Inc. (OTC BB: NFSE) is an innovative financial services company and provider of stored value and prepaid card solutions headquartered in Tampa, Florida. nFinanSe has developed the nFinanSe Network™, a secure, reliable value load and activation platform that connects with retail merchants and other value load stations located throughout the United States. For more information, visit www.nfinanse.com.
“Safe Harbor” Statement under Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements based on nFinanSe Inc.’s, or, the Company’s current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements include statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar words and include statements regarding the anticipated benefits of the Company’s products and the anticipated retail roll out of the Company’s products. Forward-looking statements in this release are based on information available to the Company as of the date hereof. The Company’s actual results may differ materially from those stated or implied in such forward-looking statements due to risks and uncertainties associated with the Company’s business, which include the Company’s ability to execute its business strategy and the other risk factors disclosed in the Annual Report on Form 10-K for the year ended January 3, 2009 on file with the Securities and Exchange Commission. The Company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
