LODI, Calif., May 17, 2005 (PRIMEZONE) -- PayStar Corporation (Pink Sheets:PYST), a leading provider of prepaid ATM debit cards and nationwide debit card bank loading centers today announced the signing of a two-year financing commitment with Cornell Capital Partners LP that will provide the Company with up to $5 million in financing. The agreement comprises an equity line of credit and is subject to PayStar returning to the OTCBB and registering the shares with the Securities and Exchange Commission. Cornell Capital is a New Jersey-based domestic hedge-fund.
"We are pleased to have reached an agreement with Cornell Capital on terms beneficial to both parties. This funding commitment provides access to significant working capital necessary to implement PayStar's GLOBALCash division's business plan. The agreement allows us to be in complete control and gives flexibility as to when and how much we wish to draw down," said William D. Yotty, Chairman, President and CEO of PayStar Corporation.
Santa Fe Capital Group, (SFCG) is an investment banking and business advisory services firm, specializing in emerging technology companies. SFCG was retained by PayStar to arrange the funding. SFCG has been serving as advisor to the PayStar executive management team since it played a role as a business consultant in early 2003.
About PayStar
PayStar Corporation (www.paystar.com) provides its distributors and clients with a suite of prepaid, stored value products, national bank load center locations and Kiosk marketing and management. PayStar's GLOBALCash, Inc. (www.globalcash.us) distributes prepaid ATM debit and stored value cards that can be used just like regular credit cards. Prepaid ATM debit cards can be used everywhere major credit cards are accepted (stores, restaurants, theaters) and online. PayStar is a partner in a prepaid ATM debit card program for a national government project that will enable millions of underserved and subsidized housing individual's access to prepaid ATM debit cards. PayStar's corporate and distributor sales, as well as mergers and acquisitions, will continue to drive growth.
Legal Notice Regarding Forward-Looking Statements: 'Forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. Forward-looking statements represent management's best judgment as to what may occur in the future, but are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those presently anticipated or projected by management. These statements are only predictions and may differ materially from actual future results or events. PayStar disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions (including in the information technology and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies.