Quepasa Corporation receives $7M in Financing.

Quepasa Corporation has entered into financing agreements with Mexican and Americans Trading Together, Inc. (“MATT”) and Richard L. Scott Investments, LLC (“RLS”), to provide Quepasa with $7 million of working capital. MATT and RLS are two of the company’s largest investors.

“We welcome this capital infusion and vote of confidence by these two significant shareholders. We believe this infusion of capital will enable us to execute on our vision, which is to create a truly unique social Hispanic experience at Quepasa.com. We expect to introduce some innovative networking concepts that will be new to both the Latino and Anglo markets,” stated John C. Abbot, Chief Executive Officer of Quepasa.

Under the terms of the agreements, MATT and RLS have loaned $5 million and $2 million, respectively, in exchange for 10 year subordinated promissory notes for the respective amounts. Interest will accrue on the outstanding unpaid principal amount due under the notes from the date of each note until the principal amount is paid in full at an interest rate of 4.46%, compounded annually. Quepasa will only be required to pay interest on the outstanding principal amount of the promissory notes on their maturity or upon prepayment.

In addition to the promissory notes, the exercise prices for the warrants held by MATT to purchase one million shares of Quepasa stock at $12.50 per share and one million shares of Quepasa stock at $15.00 per share have both been reduced to $2.75 per share. The exercise prices for the warrants held by RLS to purchase 500,000 shares of Quepasa stock at $4.00 per share and 500,000 shares of Quepasa stock at $7.00 per share have also been reduced to $2.75 per share.