SAN ANTONIO, Dec. 21, 2017 (GLOBE NEWSWIRE) — Payment Data Systems, Inc. (Nasdaq:PYDS), an integrated electronic payment solutions provider, today announced it has agreed to the sale and issuance to institutional investors of 1,176,000 shares of common stock in a registered direct offering with gross proceeds of approximately $3 million. The offering price per share of common stock is $2.55.The offering is expected to close on or about December 22, 2017, subject to the satisfaction of customary closing conditions.

Maxim Group LLC is acting 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 are anticipated to be 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 are being 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.