Deal settling in four tranches; company has so far raised $2 million
By Devika Patel
Knoxville, Tenn., March 9 - FNDS3000 Corp. said it settled the third tranche of a non-brokered equity financing agreement that is settling in four tranches over nine months. The first tranche of $1 million settled on Oct. 19; the second $500,000 tranche settled on Jan. 31 and the company raised $500,000 in this tranche. A subsequent tranche of $500,000 is scheduled to occur on July 1, 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 company sold 3,246,754 restricted common shares at $0.154 apiece in the second tranche. Investors also received two-year warrants for 3,246,754 shares, which are exercisable at $0.308, a 208% premium to the Oct. 18 closing share price of $0.10.
The company sold 3,597,122 restricted common shares at $0.139 apiece in the third tranche. Investors also received two-year warrants for 3,597,122 shares, which are exercisable at $0.208, a 108% premium to the Oct. 18 closing share price of $0.10.
The financing is being 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 on Oct. 20.
"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.
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| Issue: | Restricted common stock
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| Amount: | $2.5 million
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| Price: | $0.175 (for $1 million of shares), $0.154 (for $500,000 of shares), $0.139 (for $500,000 of shares)
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Two years
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| Warrant strike price: | $0.175 (for 5,714,286 shares), $0.308 (for 3,246,754 shares), $0.208 (for 3,597,122 shares)
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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), March 9, (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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