Payment Data Systems Closes $3M Registered Direct Offering

1/1/18

SAN ANTONIO, Dec. 26, 2017 (GLOBE NEWSWIRE) -- Payment Data Systems, Inc. (Nasdaq:PYDS), an integrated electronic payment solutions provider, today announced the closing of its previously announced registered direct offering with institutional investors of 1,176,000 shares of common stock, at a purchase price of $2.55, for net proceeds of approximately $3 million.

Maxim Group LLC acted as the exclusive placement agent for this offering.

After deducting the placement agent’s commission and other estimated offering expenses payable by Payment Data, the net proceeds to Payment Data Systems were approximately $2.75 million. Payment Data Systems intends to use the net proceeds of the offering for general corporate purposes and working capital.

The securities described above were 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. (Nasdaq: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 service 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 is headquartered in San Antonio, Texas.

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