TORONTO, ONTARIO--(Marketwired - Nov. 24, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
The Mint Corporation (TSX VENTURE:MIT) ("Mint" or the "Company") announces the following:
Management Changes
Mint is pleased to announce that Rishi Tibriwal, has been appointed as the Chief Financial Officer of the Company effective Nov 24, 2014. Board and Management wish to thank Mr. Terry Walter for his services to the company and assisting the company during a difficult restructuring. Mr. Walter will continue to stay involved in a management capacity in Mint Middle East LLC the UAE subsidiary of the company.
Mr Tibriwal has over 20 years of experience in the finance field, including as a partner at a major international accounting firm serving clients with national and international operations. Mr Tibriwal is a Chartered Professional Accountant in Canada and also holds a Masters in Business Administration and a Chartered Financial Analyst designation. Most recently, Mr Tibriwal was the Chief Financial Officer at Carpathian Gold Inc. a Canadian public company with operations in Brazil and Romania.
Business Update
Mint Middle East LLC ("MME"), the UAE subsidiary of the Company, continues to make progress in implementing the new technology platform and significant work is currently being done in this regard. MME has signed a new agreement with a leading UAE bank. This agreement gives MME a new BIN (Bank Identification Number) sponsorship relationship with a leading UAE bank with a large ATM network. MME is currently in the final stages of managing the switchover of its current card portfolio to the new BIN sponsor. MME's agreement with the UAE bank also incorporates the re-establishment and launch of the microfinance loan product to customers of MME. The loans will be financed by the UAE bank and MME will earn a fee for sourcing and collections. MME is working with the UAE bank on the steps needed to launch this program.
After a strategic review MME has decided to transition out from the eVoucher telecom distribution business currently operated through Mint Electronic Payment Services ("MEPS"). The company is in the final stages of executing this strategy and plans to divest its Point of Sale Network. This move will reduce the operating losses of the company and free up working capital to redeploy on its payroll cards business.
Exercise of Convertible Debentures
On November 21, 2014, Mint received notice from Gravitas Financial Inc (Gravitas) of its intention to convert $1,040,352 of the $2,326,508 face value of convertible debentures held by Gravitas into common shares of Mint at $0.05 per share. As a result of this conversion notice, Mint issued 20,807,037 common shares to Gravitas on November 21, 2014. Subsequent to this issuance, Gravitas owns 50% of the approximately 53.6 million issued and outstanding common shares of Mint.
GENERAL DISCLOSURE STATEMENT
Investors are encouraged to read the Management Discussion and Analysis Documents filed on SEDAR for a description of additional risks associated with investing in the Company. The following statement is only intended to inform investors on certain of the many risks associated with investing in the Company. The Company operates predominantly in the Middle East and North Africa ("MENA"). It is accordingly exposed to significant political, legal and regulatory risks associated with operating in these emerging and volatile markets. The key management personnel and operations of the Company are based in countries which do not have strong and reliable judicial enforcement. This results directly in additional risk with respect to the enforcement of legal and contractual rights, including, for example but without limitation, the enforcement of the rights of creditors, the protection of intellectual property rights, the enforcement of joint venture arrangements, and binding key employees with non-compete agreements. Since inception, the Company has not reached profitability. The Company relies heavily on high-cost, debt financing to fund its business plan. This has exposed the Company to unique financial risks associated with significantly higher than normal debt levels. Investors in the company are strongly encouraged to be aware of the significant risks of the company, to conduct additional due diligence and to seek the help of a licensed investment advisor before considering to invest in securities of the Company. Moreover, investors must be aware that the purchase of the Company's securities involves a number of additional significant risks and uncertainties, as disclosed in the Management Discussion and Analysis reports filed on SEDAR by the Company. Investors considering purchasing securities of the Company should be able to bear the economic risk of total loss of such investment.
FORWARD-LOOKING STATEMENTS
Certain statements in this news release constitute "forward-looking" statements. These statements relate to future events or Mint's future performance and include the relaunch of the microfinance loan product to customers of MME and the divestiture of the MEPS Point of Sale Network. All such statements involve substantial known and unknown risks, uncertainties and other factors which may cause the actual results to vary from those expressed or implied by such forward-looking statements. In addition to other risks, MME could be prevented from, or delayed in, re-launching the microfinance loan product if it is unable to finalize or reach agreement with the UAE bank on the procedures required. In addition to other risks, MEPS could be prevented from, or delayed in, divesting itself of the MEPS Point of Sale Network if it is unable to reach a satisfactory agreement with potential purchasers. Forward-looking statements involve significant risks and uncertainties, they should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved. Actual results could differ materially from those anticipated due to a number of factors and risks. Although the forward-looking statements contained in this news release are based upon what management of Mint believes are reasonable assumptions on the date of this news release, Mint cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and Mint disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
ABOUT MINT CORPORATION
Established in 2004, Mint is the world's first vertically integrated prepaid card and payroll services provider with its own ATM network, payment processing platform and proprietary branded card product delivered to workers in the United Arab Emirates and expanding to other parts of the Middle East. Mint operates through its subsidiary, Mint Middle East LLC, a payroll card services provider in UAE.
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