IFAN financial, a San Diego-based software developer concentrating on mobile payments, has reached a funding agreement with New York-based Sea Otter Global Ventures, in a deal that will total $2.5m.
The payment technology firm will receive the money in two separate instalments. Firstly, IFAN will obtain a $500,000 secured promissory note, and then the firm will gain a $2m equity line of credit.
The 12-month loan is secured by insider stock, and carries a 10% annual interest rate, payable quarterly in cash.
‘‘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,’’ commented J. Christopher Mizer, president and CEO of IFAN financial.
The funding will be used to improve upon current partnerships IFAN has with other companies. Last month IFAN announced a new partnership with digital branding agency Blue Like Neon, with the software group providing Blue Like Neon with cutting-edge mobile payments solutions.
‘‘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,’’ continued Mizer.
Jonathan Juchno, director of Sea Otter Ventures, believes 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.’’
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