FNDS3000 Corp Closes on Second Tranche of $2.5 Million Equity Financing Agreement

JACKSONVILLE, Fla., Jan. 31, 2011 /PRNewswire/ -- FNDS3000 Corp (OTC Bulletin Board: 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 second scheduled tranche of the $2.5 million, non-brokered equity financing agreement entered into in October 2010.  

This financing was again led by Sherington Holdings, LLC, a private investment company, whose Chairman and CEO Raymond Goldsmith is also Chairman and CEO of FNDS3000.  When coupled with the related $1 million financing completed in October 2010, this financing brings the total amount of capital received to date under the October commitment agreement to $1.5 million.  The final two tranches of $500,000 each are expected to be closed on or before April 1, 2011 and July 1, 2011.  Proceeds from the private placements are intended to be used as working capital to support continued growth of FNDS3000's South African prepaid card business.  

Pursuant to the terms defined in the agreement, this $500,000 financing provided for the issuance of 3,246,754 shares of restricted common stock valued at $0.154 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 of $0.308 per share.  

About FNDS3000 Corp

Headquartered in the U.S. with operations in South Africa, FNDS3000 Corp is engaged in executing a series of international growth initiatives designed to position the Company as a major player in the world's fastest growing payment card segment: prepaid cards.  Given that 40% of the adult population in South Africa is currently unbanked or underbanked, FNDS3000's initial focus has concentrated on offering tailored prepaid card programs and services to business customers in this developing prepaid market, including network branded and closed loop programs that support employee payroll, insurance, medical aid, gift cards, prepaid cellular charges and small-scale international transfer of funds. The Company provides these programs and services through a proven, proprietary U.S. processing platform that has been designed for international and cross border capability.  For more information, please visit www.FNDS3000.com, or follow us on Twitter @_FNDS3000.  

Forward Looking Statements

Matters discussed in this press release contain forward looking statements.  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 obligation to publicly update or revise its forward looking statements even if experience or future events make it clear that any of the projected results expressed or implied herein will not be realized.

SOURCE FNDS3000 Corp