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FNDS3000 Corp Announces $1 Million Financing
Jul 08, 2009 (08:07 AM EDT)
PONTE VEDRA BEACH, Fla., July 8 /PRNewswire-FirstCall/ -- FNDS3000 Corp announced today the completion of a non-brokered private placement financing in which the Company raised $1 million through the issuance of its common stock and warrants to accredited investors (the "Financing").
Details of the Financing included a sale of 5,714,286 shares of common stock (the "Common Stock") at a price of $0.175 per share. In addition, for each share purchased the investors received a warrant to purchase one share of the Company's common stock exercisable at $0.20 per share for 24 months from the date of closing of the private placement (the "Warrants"), for total net proceeds of $1,000,000. The material terms of the Financing are outlined in Form 8-K filed with the Securities and Exchange Commission earlier today.
"The completion of this offering, in an extraordinary credit environment, bolsters FNDS3000 Corp as we continue to enhance our operational capabilities and further validates the strength of our business model," said Joe McGuire, Chief Financial Officer. "In addition, we appreciate the continued support of our existing investors who participated in this round of financing. Our lead investor, Sherington Holdings LLC took a 50% interest in the offering, while of the other 50%, $240,000 is invested by our management team and $260,000 by board members and other existing investors."
John Hancock, Chief Executive Officer, commented that "this private placement, at a level higher than earlier anticipated, provides the funding to complete the Pilot Test Phase of our introduction of Prepaid Cards in South Africa. This Phase is now in the final stages of completion and results to-date have been encouraging. This placement should fund the Company through the final Volume Testing Phase and on to production roll-out during the remainder of 2009. We expect to be able to update investors periodically on our progress as we transition through these Phases and increase the number of cards in the market."
The Company offered and sold the Common Stock and Warrants in the Financing 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.
FNDS3000 Corp is a financial transaction processing service company. Since its inception, its focus has been on the development and implementation of a variety of prepaid card programs outside the United States, including services to individuals who lack access to conventional banking services. FNDS3000 meets a vital need of companies that have financial dealings with such individuals by offering prepaid cards that can be tailored to the differing requirements of each customer. FNDS3000 intends to provide these services in both developed and underdeveloped nations through a proven U.S. processing platform that has been designed for international and cross border capability. Many of these FNDS3000 products carry worldwide brand marks and can be used anywhere that accepts these brands. Programs that can be supported include payroll, insurance, medical aid, gift cards, prepaid cellular charges and small-scale international transfers of funds.
Matters discussed in this press release contain forward looking statements as defined under the Private Securities Litigation Reform Act of 1995. 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 obligationto publicly update or revise its forward looking statements even if experience or future eventsmake it clear that any of the projected results expressed or implied herein will not be realized.
CONTACT: Joe McGuire, Chief Financial Officer, FNDS3000 Corp, jmcguire@FNDS3000.com+1-904-273-2702,
Web site: http://www.fnds3000.com/