Business
Cuentas Receives an Additional $1.0 Million Strategic Investment by Accredited FinTech Investor as Part of Previously Announced $2.5 Million Binding Term Sheet
Cuentas Receives an Additional $1.0 Million Strategic Investment by Accredited FinTech Investor as Part of Previously Announced $2.5 Million Binding Term Sheet.
About this update from Cuentas Inc.
[{"type":"text","content":"Company Continues to Fortify Balance Sheet at Over 150% Premium to Market Ahead of Upcoming Launch of Cuentas General Purpose Reloadable (GPR) Card in New York in Q3 and Los Angeles in Q4MIAMI, FL / ACCESSWIRE / August 6, 2019 / Cuentas, Inc. (OTCQB: CUEN), a leading FinTech provider of mobile banking and payment solutions serving Latino and Hispanic consumers, has closed the previously announced $2.5 million strategic investment by an accredited FinTech investor. Cuentas has received to date $1.5 million of the $2.5 million committed by the accredited investor. Cuentas will use the proceeds for marketing and fees associated with the launch of the Cuentas FinTech Card in Q3 of 2019. Cuentas plans to open the New York market first and then the Los Angeles market as it gears up for its nationwide rollout. As previously announced,the accredited investor invested $500,000 at $3.00 per share on February 28, 2019 in exchange for 166,667 shares of common stock. Between May and July 2019, the investor provided Cuentas with $1.0 million out of the $2.0 million committed in the convertible note, with the additional $1.0 million due to Cuentas under the note to be paid in tranches over the next six months. The Investor has issued a conversion notice regarding the $1M additional investment and now owns a total of 500,000 restricted shares of CUEN, valued at $3.00 per share. The convertible note is convertible at a 25% discount to market with a $3.00 per share minimum conversion price, a significant premium to market. The convertible note will have a term of three years and a maturity date of February 28, 2022. The investor will maintain special voting rights as well as a right to appoint a Director to the Cuentas board of directors. “This capital provides us with the necessary runway to launch our Cuentas FinTech Card into the marketplace, addressing a significant gap in the financial services space,” said Arik Maimon, Founder and Chief Executive Officer of Cuentas. “We are poised for continued operational execution and I look forward to launching our Cuentas FinTech Card in New York City in the third quarter of 2019, creating long-term value for our shareholders. This clearly shows the confidence of our Investor in Management’s vision,” added Maimon. The Cuentas debit card is a soon to be launched, comprehensive solution for the 20 million...