IFAN Financial, a designer, developer and distributer of software to enable mobile payments, has closed a $2.5 million funding agreement with New York-based Sea Otter Global Ventures, LLC, enabling the company to move forward with its expansion strategy and commercialize its proprietary payment platform.
“We are very pleased to have secured this financing facility with Sea Otter. The funding will allow us to execute our business plan and begin commercialization of the proprietary IFAN payment gateway. It also provides immediate, non-dilutive capital during this phase while we are building awareness of the company,” IFAN president and CEO J. Christopher Mizer stated in the news release.
The financing is comprised of two parts: a $500,000 secured promissory note and a $2 million equity line of credit. The equity line of credit commits Sea Otter to purchase up to $2 million of IFAN common stock following the effectiveness of the soon-to-be-filed S-1 over the next 18 months. In addition, IFAN will issue to Sea Otter 500,000 warrants to purchase one share of common stock per warrant. These warrants are exercisable for 36 months after issuance. The exercise price of 250,000 of the warrants has been set at $0.50, and the exercise price of the other 250,000 has been set at $1.
Jonathan Juchno, director of Sea Otter stated, “We are excited about our investment in IFAN Financial. We believe that the mobile payments world needs improvement and innovation. We are impressed with the technology and confident that management can execute on its business strategy. We expect great things from IFAN.”
IFAN was recently selected to provide its cutting-edge mobile payments solutions to digital branding agency Blue Like Neon. IFAN’s mobile gateway will enhance Blue Like Neon’s multi-pronged market enhancement strategy by providing the company with a social commerce platform that may be customized for each client’s unique needs.
Today’s announced financing agreement positions IFAN to further its collaboration with Blue Like Neon while seeking out similar partnerships.
“Sea Otter’s funding will allow us to develop our relationship with Blue Like Neon and to pursue other, similar partnerships concurrently with the product launch. With our financial concerns settled for the next several quarters, we can now focus on building our business,” Mizer stated.
For more information, visit http://ifanfinancial.com
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