NFSE Stock: nFinanSe Announces Letter of Intent for $15 Million Credit Facility
nFinanSe Inc. (OTCBB:NFSE Stock), today announced that it has executed a
non-binding letter of intent providing the Company with a $15 million
line of credit from certain institutional investors and shareholders of
the Company, including Ballyshannon Partners, LP, an affiliate of one of
its directors. This line of credit will support the Company’s
objective of offering nFinanSe Reloadable Prepaid and Gift Cards in
30,000 retail locations by year end. Currently, the Company has
commitments to offer its cards from retailers representing over 20,000
stores which are expected to commence selling cards this summer.
Jerry R. Welch, nFinanSe’s Chairman and Chief
Executive Officer, said, “We are very excited
to obtain this important and unique accounts receivable financing. Our
prepaid cards are `instant issue' and do not require the customer to
wait 7-10 days after purchase to receive a card in the mail like the
cards sold by our major competitors. As a result, we believe this
`instant issue' feature is a major competitive advantage for our
Company. This credit facility will allow us to fund the cards from the
moment they are sold to cardholders even though the actual funds
collected at retail have not yet been routed through our distributors to
nFinanSe.”
Raymond P. Springer, nFinanSe’s Executive Vice
President and Chief Financial Officer, added, “The
credit facility will be used solely to finance accounts receivables
generated from the sale of the Company’s
retail prepaid cards through certain prepaid distributors and large
direct retail accounts. We are very pleased to have arranged this line
of credit in such a difficult credit market and we believe it reflects
the confidence in, and enthusiasm for, our business plan.”
Mr. Springer also stated that he expected final documentation to be
completed and the financing closed by the end of June.
About nFinanSe Inc.
nFinanSe Inc. is an innovative financial services company and provider
of stored value and prepaid card solutions headquartered in Tampa,
Florida. nFinanSe has developed the nFinanSe Network, a secure, reliable
value load and activation platform that connects with retail merchants
and other value load stations located throughout the United States.
“Safe
Harbor”
Statement under Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements based on
nFinanSe Inc.’s, or, the Company’s
current expectations, forecasts and assumptions that involve risks and
uncertainties. Forward-looking statements include statements regarding
the Company’s expectations, beliefs,
intentions or strategies regarding the future and can be identified by
forward-looking words such as “anticipate,”
“believe,” “could,”
“estimate,” “expect,”
“intend,” “may,”
“should,” “will,”
and “would” or
similar words and include statements regarding the anticipated timing
and benefits to the Company of the credit facility and the anticipated
retail roll out of the Company’s products.
Forward-looking statements in this release are based on information
available to the Company as of the date hereof. The Company’s
actual results may differ materially from those stated or implied in
such forward-looking statements due to risks and uncertainties
associated with the Company’s business, which
include the Company’s ability to execute its
business strategy and the other risk factors disclosed in the Annual
Report on Form 10-KSB for the year ended December 29, 2007 on file with
the Securities and Exchange Commission. The Company assumes no
obligation to update the information included in this press release,
whether as a result of new information, future events or otherwise.
nFinanSe Inc., Tampa Clare J. Morgan, Vice President, Marketing,
813-367-4400
