Mint Technology Corp.
TSX VENTURE : MIT

Mint Technology Corp.

September 02, 2009 10:13 ET

Mint Completes Private Placement

TORONTO, ONTARIO--(Marketwire - Sept. 2, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Mint Technology Corp. (TSX VENTURE:MIT) announced today that it has completed a brokered private placement of units for gross proceeds of $2,485,375. Mint issued 19,883,000 units at $0.125 per unit. Each unit consisted of 1 common share and 1 common share purchase warrant. Each common share purchase warrant entitles the holder to purchase one common share at a price of $0.15 on or before August 31, 2011.

Mint intends to invest the proceeds, as previously announced, in its regional expansion in the Middle East and United Kingdom and to pursue a number of strategic expansion opportunities in the prepaid and stored value card space in Canada and USA.

Glocap Management Inc. (a corporation controlled by Chris Hogg, the CEO of Mint), Jane Stone (the wife of Jeremy Stone, a director of Mint) and a third party are trading 3,500,000 common shares for $0.10 each as a "swap" (i.e. exchanging free trading shares for shares with a hold period) and reinvesting the proceeds of $350,000 in the private placement by purchasing units ($131,600 of units, in the case of Glocap and $156,900 of units, in the case of Mrs. Stone).

Mint has repaid $560,000 of secured promissory notes. $485,000 of those funds have been reinvested in units as part of this private placement.

The common shares and common share purchase warrants issued today include 6,115,999 shares and warrants issued to insiders of Mint. Pursuant to Multilateral Instrument 61-101 ("MI 61-101"), the participation of these insiders constitutes a "related party transaction". Mint is exempt from the formal valuation requirement and shareholder approval requirement of MI 61-101, as described in more detail in the material change report to be filed in connection with this private placement. The filing of a material change report less than 21 days before the closing date of the private placement is necessary in order to complete the private placement in a timely manner.

One of the subscribers, Cristomel Inc. ("Cristomel") of Montreal, Quebec, subscribed for 3,280,000 units in the private placement. Following the private placement, Cristomel will own and control 10,597,333 common shares and 10,597,333 warrants. The common shares owned by Cristomel will represent approximately 21% of the outstanding common shares of Mint. If the warrants owned by Cristomel are fully exercised, the holdings of Cristomel would represent approximately 35% of the outstanding common shares of Mint (assuming that no other outstanding warrants and options of Mint are exercised). This transaction was made for investment purposes only and Cristomel may increase or decrease its investment in Mint depending on market conditions or other relevant factors.

Another subscriber, Credit Guarantee Corporation Limited. ("CGC") of Dublin, Ireland, subscribed for 4,000,000 units in the private placement. CGC does not own any other securities in Mint. The common shares owned by CGC will represent approximately 8% of the outstanding common shares of Mint. If the warrants owned by CGC are fully exercised, the holdings of CGC will represent approximately 15% of the outstanding common shares of Mint (assuming that no other outstanding warrants and options of Mint are exercised). This transaction was made for investment purposes only and CGC may increase or decrease its investment in Mint depending on market conditions or other relevant factors.

Fraser Mackenzie Limited acted as agent for the Offering. Mint has paid Fraser Mackenzie a cash fee equal to $118,720. Fraser Mackenzie also received 949,760 non-transferable agent's warrants which enable it to acquire an equivalent number of common shares at a price of $0.125 per share at anytime up until September 1, 2010.

The common shares and common share purchase warrants issued in the private placement announced today are subject to a four month hold period which expires on January 2, 2010 (with respect to 15,875,000 common shares and warrants) and January 3, 2010 (with respect to 4,008,000 common shares and warrants). Following completion of this closing, there are approximately 50,023,154 issued and outstanding common shares of Mint.

ABOUT MINT TECHNOLOGY CORP.

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.

Forward-Looking Statements

Except for statements of historical fact, all statements in this news release - including, without limitation, statements regarding future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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