SAN ANTONIO--(BUSINESS WIRE)--Payment Data Systems, Inc. (Nasdaq: PYDS), a tech enabled payment solutions provider, today announced it has agreed to the sale and issuance of 769,230 shares of common stock to an institutional investor in a registered direct offering with gross proceeds of approximately $2.0 million. The offering price per share of common stock is $2.60.
The gross proceeds to Payment Data Systems from the registered direct offering is expected to be approximately $2.0 million before deducting the placement agents' fees and other estimated offering expenses. Payment Data Systems intends to use the net proceeds of the offering for general corporate purposes, working capital, and potential strategic acquisitions. The offering is expected to close on or about February 14, 2019, subject to the satisfaction of customary closing conditions.
Maxim Group LLC is acting as the exclusive placement agent for this offering.
The securities described above are being offered and sold in the offering by Payment Data Systems pursuant to a “shelf” registration statement on Form S-3 (Registration No. 333-221178), including a base prospectus, previously filed with and declared effective by the Securities and Exchange Commission (SEC) on December 6, 2017. A prospectus supplement and an accompanying base prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the prospectus supplement and accompanying base prospectus may also be obtained from Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, at 212-895-3745.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. Any offering will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.
About Payment Data Systems, Inc.
Payment Data Systems, Inc. (PYDS), a leading integrated payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to their clients. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Payment Data Systems is headquartered in San Antonio, Texas, and has offices in Franklin, Tennessee, just outside of Nashville.
Websites: www.paymentdata.com, www.singularpayments.com, www.payfacinabox.com, www.akimbocard.com, and www.ficentive.com. Find us on Facebook® and Twitter.
