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Prepaid Card Holdings, Inc. Closes Private Restricted Stock Offering and Ramps up Consumer Prepaid Debit Card and Business Prep

^{Published on 2011-01-11 06:41:09 - Market Wire}
 

LAS VEGAS--([ BUSINESS WIRE ])--Prepaid Card Holdings, Inc. (Pink Sheets:[ PPDC ]), which owns 100% of [ Bank Freedom ] and [ Bank Freedom Business Solutions ], closed a private placement restricted stock offering on December 31, 2010. The companya™s operating subsidiaries immediately began ramping up their marketing campaigns in December. In January the company intends to increase its marketing budget to advertise on the radio, as well as significantly increase its internet-based direct marketing campaigns.

The timing of the funding allows the company to ramp up its marketing for the tax refund season. The company has historically seen a significant spike in direct deposits and usage in January through April due to tax refunds being deposited to its prepaid debit cards. This year the IRS has stated there will be a delay in processing tax refunds until February which the company believes may make the January marketing push more effective.

The company focused most of its efforts and operating capital in 2010 on the costs associated with transitioning from its original processing systems to two independent bank-grade processing systems. These new systems have virtually unlimited scalability, increased dependability, and a host of new financial features key to the companya™s long term growth plans.

Once integration to the new processing systems was completed, the company began integrating and developing new features and services. The companya™s operating subsidiary quickly integrated and launched a Surcharge-Free ATM network allowing its cardholders to make ATM withdrawals at over 18,000 Nationwide ATMa™s without having to pay the owner of the ATM the customary $2-$4 owner surcharge-fee.

The company also integrated two additional cash loading networks for its prepaid card programs and now offers its cardholders three cash loading options at over 130,000 retail locations nationwide. The added convenience of these cash loading networks, upgraded processing systems, and surcharge-free ATM networks puts the companya™s prepaid products on an equal playing field with other prepaid card companies. The company is able to deliver a quality product at a fair and competitive price.

Prepaid Card Holdings, Inc. issued 65,000,000 shares of restricted common stock in exchange for $975,000. The company now has 457,153,890 of common stock issued of which 56,003,209are free trading, and 401,150,661 are restricted.

About Prepaid Card Holdings, Inc.

Prepaid Card Holdings, Inc. is a provider of financial services in the prepaid debit card industry. The company, through its wholly owned subsidiary, offers prepaid debit cards to Americaa™s estimated 60 million underbanked citizens. In addition to the underbanked consumer demographic, small and mid size businesses have found a much needed product with the companya™s Prepaid Business Expense Card Program. With the diminishing credit card markets, companies need a new way to fund employeesa™ expenses other than through traditional credit cards or cash reimbursements. For more information about Prepaid Card Holdings, Inc. visit [ www.PrepaidCardHoldings.com ], [ www.BankFreedom.com ] and [ www.ExpenseCard.com ]

FORWARD-LOOKING SAFE HARBOR STATEMENT: To the extent that this release discusses any expectations concerning future plans, financial results or performance, such statements are forward looking 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, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties and the Company assumes no obligation to update any of the forward-looking statements in this release.