FNDS3000 Corp Closes on Final Tranche of $2.5 Million Equity Financing Agreement
Wednesday 18 May 2011
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.
AI
