Cuentas Inc. received an additional investment of $1.0 million and closed its previously announced $2.5 million strategic investment by a financial technology investor, the company said Aug. 6.
The unnamed investor previously invested $500,000 at $3.00 per share in exchange for 166,667 shares of Cuentas' common stock. The investor then provided Cuentas with $1.0 million out of the $2.0 million committed in the convertible note, with the additional $1.0 million due to Cuentas under the note to be paid in tranches over the next six months.
The investor has issued a conversion notice regarding the $1.0 million investment and now owns a total of 500,000 restricted shares of the company. With this investment, the investor will have special voting rights and a right to appoint a director to Cuentas' board, the company said.
Cuentas, which provides mobile banking and payment services, will use the proceeds to launch Cuentas' fintech card during the third quarter. The company also aims to launch the card in markets in New York and Los Angeles before rolling out nationwide.