Deal to settle in four tranches; company has already raised $1 million
By Devika Patel
Knoxville, Tenn., Oct. 20 - FNDS3000 Corp. said it has arranged a 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 settled on Oct. 19; the three subsequent tranches, of $500,000 each, are scheduled to occur on Jan. 31, 2011, April 1, 2011 and July 1, 2011 for a total of $2.5 million.
The company sold 5,714,286 restricted common shares at $0.175 apiece in the first tranche. Investors also received two-year warrants for 5,714,286 shares, which are exercisable at $0.175, a 75% premium to the Oct. 18 closing share price of $0.10.
The financing was led by Sherington Holdings, LLC, with participation from other current shareholders.
"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," chairman and chief executive officer Raymond Goldsmith said in a press release.
"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," Goldsmith added.
The public financial transaction processing company is based in Ponte Vedra Beach, Fla.
| Issuer: | FNDS3000 Corp.
|
| Issue: | Restricted common stock
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| Amount: | $2.5 million
|
| Price: | $0.175
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| Warrants: | For 5,714,286 shares
|
| Warrant expiration: | Two years
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| Warrant strike price: | $0.175
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| Investor: | Sherington Holdings, LLC (lead)
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| Settlement date: | Oct. 19 (for $1 million), Jan. 31 (for $500,000), April 1, (for $500,000), July 1 (for $500,000)
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| Stock symbol: | OTCBB: FDTC
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| Stock price: | $0.10 at close Oct. 19
|
| Market capitalization: | $10.34 million
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