Mint Technology Corp.

Mint Technology Corp.

July 30, 2009 15:35 ET

Mint Announces Proposed Acquisition of Waseela Equity LLC in the United Arab Emirates

TORONTO, ONTARIO and DUBAI, UNITED ARAB EMIRATES--(Marketwire - July 30, 2009) -


Mint Technology Corp. ("Mint" or the "Company") (TSX VENTURE:MIT) today announced that it has entered into a non-binding Letter of Intent (the "LOI"), which contemplates the formation of an 80% owned subsidiary of Mint ("Mint UAE") and the acquisition by Mint UAE of the assets of Waseela Equity LLC ("Waseela") including its prepaid and payroll card business based in Dubai, U.A.E. Management of Waseela will receive a 20% interest in Mint UAE. The purchase price payable by Mint will be USD$2.5 million, payable by delivery of an interest free promissory note due on the first anniversary of closing. Payment of the promissory note may be made, at Mint's election, in cash, shares of Mint or some combination of both. Mint will provide a working capital facility to Mint UAE in an amount to be determined prior to closing. Mint will also transfer its existing prepaid and payroll card business in the U.A.E into Mint UAE.

The proposed acquisition is in line with Mint's previously communicated strategy to expand in overseas markets. During the two years following completion of the transaction, Mint expects that Mint UAE will generate revenues of over USD$10 million. In the U.A.E, all companies registered with the Ministry of Labour will be subject to paying employee salaries through the newly introduced Wages Protection System, which involves the mandatory transfer of salaries through selected financial institutions authorized and regulated by the government, which creates the strategic importance and premise of the transaction.

The acquisition incorporates a payroll services contract from a global bank with significant presence in the Gulf Cooperation Council area, including a sponsoring Identification Number (BIN) for Mint UAE's prepaid cards enabling Mint UAE's customers to access the interbank U.A.E Switch network to withdraw salaries through an ATM network of all banks in the U.A.E as well as use these cards to purchase products or services through merchant point of sale.

Mint's President and CEO Chris Hogg commented, "Waseela offers Mint the opportunity to expand in the important Gulf Cooperation Council ("GCC") financial services sector serving the under banked market in a more meaningful way. We would look at this as a step beyond our existing contractual arrangement with Waseela to provide turn-key services including regulatory compliance to Mint such that it can expand payroll services agreements in the region with a significant existing platform of business under ownership."

Mr. Bradley Kruse, Head of Global Business Development for Mint added, "The financial and investment metrics reflect an immediate opportunity to realize revenues and synergies that are generated from Waseela's and Mint's existing client bases. Furthermore, combining Mint's and Waseela's respective prepaid card expertise will significantly enhance the ability to target, grow and service the U.A.E's resident population of nearly 3 million migrant workers"

"Mint UAE will emerge the largest payroll card service provider in UAE with its customer base expected to be over 10% of the available market as a starting point post, Waseela and global bank transaction closings" concluded Mr. Kruse.

The transaction is conditional upon, among other things, the completion of a definitive business combination agreement (which will include the final structure of transaction), regulatory approval, and the execution and delivery of satisfactory support agreements to be entered into with key shareholders. The parties anticipate completion of the transaction by August 31 and due diligence has commenced.

There can be no assurance that a definitive agreement will be negotiated, that the conditions of closing will be satisfied, or that the transaction will be completed as proposed or at all.


Mint Technology Corp. is a pioneer in prepaid financial products and services and is Canada's first provider of prepaid credit card programs. As a MasterCard® Member Service Provider, Mint works with business partners to customize prepaid credit card programs that are tailored to meet a company and its card holder's needs. Mint has developed a secure, robust payments platform that provides an improved means to handle and manage financial transactions. Mint also provides services for those clients looking to move towards 'next generation' payment methods that include chip, internet, data mining and mobile phone load and remittance technologies. Mint's prepaid card products include general spend for the underserved, youth and employee payroll. Stock Symbol: MIT on the TSX Venture Exchange.


Waseela is a group company of Islamic Finance Company, which was established in 2006 and is licensed by the Central Bank of U.A.E. for providing Financial Services. The key strengths of Waseela and its partner group of companies lie in its workforce that keeps abreast of the latest technologies. Its turnkey Payroll Card solutions are integrated with independent service providers to deliver an aggregated Payroll Card solution, in combination with a mobile SMS-based international money remittance solution. Waseela's deep understanding of representative domains is backed up with an impressive list of clientele across the U.A.E.

Forward-looking Statements.

Certain statements in this news release may constitute "forward-looking" statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. These statements involve substantial known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Mint, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, delays in rolling out card programs, the ability of Mint to obtain financing and the terms of any financing, the possibility of technical, logistical or planning issues in connection with deployment of Mint's products and solutions, demand for Mint's products, and other factors discussed in Mint's MD&A filed on SEDAR. 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 new release, Mint cannot assure investors that actual results will be consistent with these forward looking statements. These forward-looking statements are made as of the date of this news release, and Mint assumes no obligation to update or revise them to reflect new events or circumstances.

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