JetPay® Signs Agreement With Respect To $40 Million Capital Investment From Flexpoint Ford, LLC
JetPay®Signs Agreement With Respect To $40 Million Capital Investment From Flexpoint Ford, LLC
BERWYN, Pa.--(BUSINESS WIRE)-- JetPay® Corporation ( NASDAQ: JTPY) announced today that Flexpoint Ford, a private equity firm focused on the financial services and healthcare sectors, signed a definitive agreement on August 22, 2013 to invest up to $40 million in the company through the purchase of Series A convertible preferred stock. This investment will be used to retire up to $16 million of currently outstanding debt with the remainder available to invest in the company's growth. The transaction is expected to close in the next 45 days.
Bipin C. Shah, Chairman and Chief Executive Officer of JetPay Corporation, explains: "It is our plan to become the vendor of choice for businesses in need of the most advanced technologies in payment, processing, payroll, and card services. JetPay also envisions benefiting employees of our customers with payroll services without risk or unnecessary expense. The proposed investment by Flexpoint, a successful and highly-regarded investment firm, provides us with the ability to quickly carry out our plan while providing fast, secure, and safe payments solutions for businesses of all sizes." He continued: "Flexpoint's confidence in us validates what we have already created and gives us an opportunity to accelerate our growth."
Don Edwards, Managing Principal of Flexpoint Ford, said: "We are excited to partner with Bipin Shah. We have a longstanding relationship with Bipin and his team and have had success together in the past." He added: "We expect that JetPay's existing core business coupled with management's strong capabilities will deliver results for our investors."
About JetPay Corporation
JetPay is a leading provider of vertically integrated solutions for businesses including card acceptance, processing, payroll, payroll tax filing and other financial transactions. JetPay provides a one vendor solution for payment services, debit and credit card processing, ACH services, and payroll and tax processing needs of businesses throughout the U.S. The company also offers low-cost payment choices for the employees of these businesses to replace costly alternatives. Its vertically aligned services provide customers with convenience and increased revenues by lowering payments-related costs and by designing innovative, customized solutions for internet, mobile, and cloud-based recurring payments. Please visit www.jetpay.com, and www.jetpaypayroll.com for more information.
About Flexpoint Ford, LLC
Flexpoint Ford, LLC is a private equity firm dedicated to the financial services and healthcare sectors. Flexpoint Ford seeks to build relationships with executives and companies who look for Flexpoint Ford to be a value-added partner. Flexpoint Ford currently manages approximately $1 billion in committed capital on behalf of its limited partners. For more information about Flexpoint Ford, please visit www.flexpointford.com.
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. JetPay's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside JetPay's control and are difficult to predict. Factors that may cause such differences include, but are not limited to, those described under the heading "Risk Factors" in the Company's latest filed Annual Report on Form 10-K as amended, for the transition period ending December 31, 2012 and the Company's Quarterly report on Form 10-Q for the quarter ended June 30, 2013.
JetPay cautions that the foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in JetPay's most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward- looking statements concerning JetPay or other matters and attributable to JetPay or any person acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. JetPay cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. JetPay does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
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