IFAN Financial Announces $2.5 Million Financing by Sea Otter Global Ventures

December 1, 2015

SAN DIEGO, CA–(Marketwired – May 29, 2015) – IFAN Financial, Inc. (OTC: IFAN), a designer, developer, and distributer of software to enable mobile payments, is pleased to announce that it has closed a funding agreement with NY-based Sea Otter Global Ventures, LLC, manager of SBI Investments, LLC (together, “Sea Otter”) for $2,500,000.

The financing is comprised of two parts — a $500,000 secured promissory note and a $2,000,000 equity line of credit. The 12-month loan is secured by insider stock, and carries a 10% annual interest rate, payable quarterly in cash. Sea Otter provided half of the loan upon closing, and the other half will be released upon filing of the S-1 registration statement.

The equity line of credit commits Sea Otter to purchase up to $2,000,000 of IFAN Financial common stock following the effectiveness of the S-1 over the next 18 months. The purchase price will be the lesser of a 20% discount to Market Price (taken to be the average of the 3 lowest volume weighted average prices of the stock during the five consecutive trading days prior to notice by IFAN to draw on the line of credit) or a 15% discount to the price on the fifth trading day of the pricing period. IFAN have full jurisdiction on the facility which allows the company to control share purchases and minimize dilution.

In addition, IFAN will issue to Sea Otter 500,000 warrants to purchase one share of common stock per warrant. Upon execution of the definitive transaction documents, the first 250,000 warrants were issued. The balance is to be issued when the S-1 is filed. 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 $1.00. These warrants may be settled in cash or by non-cash means.

IFAN Financial’s President and CEO, J. Christopher Mizer, stated, “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.”

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.”

This financing follows IFAN’s recent announcement that has been selected by digital branding agency Blue Like Neon to provide it with cutting-edge mobile payments solutions. Blue Like Neon utilizes a multi-pronged, market enhancement strategy to create campaigns that allow clients to better engage with their customers. These campaigns are also designed to increase visibility and retention. IFAN Financial’s mobile gateway will enhance this approach by providing Blue Like Neon with a social commerce platform that may be customized for each client’s unique needs.

Mizer stated, “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.”

About IFAN Financial, Inc.

IFAN Financial, Inc. and its wholly owned subsidiaries design, develop, and distribute software to enable mobile payments. These include the ability to use a debit card and corresponding PIN number while purchasing online on a mobile phone, tablet, or computer and peer-to-peer cash transfers. For more information, visit www.ifanfinancial.com.

Forward-Looking Statements

This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of IFAN Financial, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond IFAN Financial, Inc.’s ability to control, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in IFAN Financial, Inc.’s filings with the Securities and Exchange Commission.

 

Contact:

Steve Scholl
Chief Financial Officer
IFAN Financial, Inc.
5694 Mission Center Road
Suite 602-660
San Diego, CA 92108-4312
Direct: 858-277-9868
FAX: 619-923-2907
[email protected]
www.ifanfinancial.com