This
prospectus supplement supplements the prospectus dated September 14, 2007 of
Freedom Financial Holdings, Inc. (the “Company”), relating to the sale of up to
1,500,000 shares of Common Stock of the Company. You should read this prospectus
supplement in conjunction with the prospectus, and this prospectus supplement
is
qualified by reference to the prospectus, except to the extent that the
information in this prospectus supplement supersedes the information contained
in the prospectus.
Strategy
for Growth
Consistent
with the Company’s strategy to leverage technology to maximize efficiency, we
have entered into a non-binding letter of intent to acquire
the assets and operations of MStar Systems LLC (“MStar”) through either a
stock-for-stock or stock-for-assets exchange to be determined by us. The letter
of intent is not intended to bind either MStar or us to the transaction, but
is
intended solely to indicate our intention to proceed with a due diligence
investigation of MStar’s business operations, financial affairs and prospects
and to negotiate with MStar in good faith a definitive agreement containing
the
terms and conditions that are to be set forth in a definitive agreement.
Execution of a definitive agreement is subject to completion of the due
diligence investigation and there can be no assurance that we will actually
complete the acquisition of MStar.
MStar
was
created out of the collaboration of an experienced mortgage company, Morningstar
Mortgage, based in Lakewood, CO, and a technology company, Quantum Research,
that has created, engineered and licensed computer and Internet-based products
and services domestically and internationally. MStar’s vision is to apply
automation and technology to the process of loan financing. Through the creation
of an interactive web portal, integrated with a high tech centralized loan
processing center, MStar emphasizes communication with, and provides
high-quality customer service to, its clients and to the realtors, builders
and
others involved in the loan process.
We
believe that the acquisition of MStars’ technology will position us to improve
our customer communication and streamline the loan application process of our
customers.
Short-term
Debt
In
September 2007 the Company entered into a credit agreement with an unaffiliated
party wherein the Company borrowed $100,000. The terms of the credit agreement
call for payment of the principal and interest at a flat rate of fifteen percent
(15%) of the amount borrowed. The principal and interest at a flat 15% of the
outstanding principal will be paid in full on March 14, 2008. If the principal
and interest at a flat 15% of the outstanding principal are not repaid on or
before March 14, 2008, an additional five percent (5%) interest will be added
with payment in full due on April 14, 2008. The interest will continue to accrue
thereafter at a rate of 1% per month or 12% per year until paid in full. As
of
the date of this Prospectus supplement, the unaffiliated party has advanced
$100,000 to the Company and the Company has not repaid any principal to the
unaffiliated party.
In
September 2007 the Company entered into a credit agreement with an unaffiliated
party wherein the Company borrowed $25,000. The terms of the credit agreement
call for payment of the principal and interest at a flat rate of fifteen percent
(15%) of the amount borrowed. The principal and interest
at a flat 15% of the outstanding principal will be paid in full on March 14,2008. If the principal and interest at a flat 15% of the outstanding principal
are not repaid on or before March 14, 2008, an additional five percent (5%)
interest will be added with payment in full due on April 14, 2008. The interest
will continue to accrue thereafter at a rate of 1% per month or 12% per year
until paid in full. As of the date of this Prospectus supplement, the
unaffiliated party has advanced $25,000 to the Company and the Company has
not
repaid any principal to the unaffiliated party.
Neither
the Securities and Exchange Commission nor any state securities commission
has
approved or disapproved of these securities or determined if this prospectus
supplement is truthful or complete. Any representation to the contrary is a
criminal offense.
This
sticker is part of the prospectus and must accompany the prospectus to satisfy
prospectus delivery requirements under the Securities Act of 1933, as
amended.
Dates Referenced Herein and Documents Incorporated by Reference
