News

PayStar gets financial backing from New Jersey firm

May 22, 2005

LODI, Calif. - PayStar Corp., which provides prepaid ATM debit cards and nationwide debit card bank-loading centers, signed a two-year financing commitment for up to $5 million with Cornell Capital Partners LP. Cornell Capital is a New Jersey-based domestic hedge-fund.

According to a news release, the agreement includes an equity line of credit and is subject to PayStar returning to the OTC Bulletin Board and registering its shares with the U.S. Securities and Exchange Commission.

"We are pleased to have reached an agreement with Cornell Capital on terms beneficial to both parties," said William D. Yotty, PayStar's chairman, president and chief executive.

The funding commitment is necessary to implement the business plan for PayStar's GLOBALCash division.

Santa Fe Capital Group, an investment banking and business advisory services firm that specializes in emerging technology companies, was retained by PayStar to arrange the funding.