FNDS3000 gets forbearance of default on convertible promissory note

By Angela McDaniels

Tacoma, Wash., Nov. 5 - FNDS3000 Corp. noteholder Sherington Holdings, LLC has agreed to temporarily forbear from exercising the rights and remedies afforded to it due to a default until Jan. 31, according to an 8-K filing with the Securities and Exchange Commission.

A default occurred when the company failed to meet a target that required it to sell at least 150,000 debit cards in South Africa by July 31 and 100,000 by Sept. 30.

If the company meets the target by Jan. 31, the default will be waived.

Sherington holds a $1 million secured convertible promissory note issued by the company. Under the forbearance agreement, the maturity of the note was extended to the earlier of Feb. 28 or the occurrence of an event of default and the conversion price was reduced to $0.15 per share.

The company also canceled the warrant issued to Sherington and replaced it with a warrant for 15,533,619 shares. The warrant is exercisable at $0.35 per share through Dec. 31, 2013.

FNDS3000 is a development-stage company engaged in the marketing and sale of debit cards. It is based in Ponte Vedra Beach, Fla.

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