EFT Canada Inc.

EFT Canada Inc.

September 02, 2011 09:00 ET

EFT Canada Completes Acquisition of Credit Card Gateway

TORONTO, ONTARIO--(Marketwire - Sept. 2, 2011) - EFT Canada Inc (TSX VENTURE:EFT), a publicly traded company based in Toronto Ontario, today announced that it has completed the acquisition of the technology assets, namely the credit card gateway, of privately held, Toronto, Ontario-based Linterna Technologies Ltd. ("LTL"). The acquisition first announced on July 12, 2011, subject to certain customary conditions, has received approval by the TSX Venture Exchange and EFT Canada's Board of Directors.

The acquired proprietary java based software provides its users a web-based point of sale interface that merchants can utilize to process credit card transactions, in addition to having the ability to operate mobile e-wallet options. The software will be integrated with EFT Canada's existing transaction processing platform, allowing customers to take advantage of the broader set of capabilities without the need to replace existing technology. EFT Canada believes the acquisition will allow it to significantly increase gross revenues and will initially market the product to its existing customer base.

EFT Canada paid LTL for its technological assets, namely the credit card processing gateway, a total of $650,000 by way of $325,000 in cash, of which $125,000 was paid on the closing date, and $325,000 payable in common shares of EFT Canada at a price of $0.30, or 1,083,000 total shares. The remaining cash payment of $200,000 is due on the beginning of the thirteenth month following the closing date, and is subject to delay and reduction if operating targets are not met. EFT Canada completed the acquisition using existing capital resources.

Common shares of EFT Canada issued to LTL were immediately placed in escrow and will be released in three equal installments following months 6, 12 and 18 of the closing date.

In addition to the purchase price, LTL will be paid by EFT Canada $0.05 per credit card transaction processed for a period of three years following the closing date. Such payments shall not exceed a combined amount of $330,000 and are also subject to reduction if operating targets are not met.

Also on the closing date, James Watt, a principal of LTL, entered into a two year consulting agreement with EFT Canada. Further, EFT has completed the previously announced hiring of additional IT personnel to support the new credit card gateway platform.

Jonathan Pasternak, President of EFT Canada, commented: "EFT Canada looks forward to taking our strengthened capabilities to the marketplace and further delivering transaction processing software to our customers. We will continue to look for acquisitions, which broaden our product line and is synergistic with existing client needs."

About EFT Canada

Founded in 2003, EFT Canada Inc. is a financial processing company that offers a complete solution to the collection and payment processing needs of small and medium sized business merchants, banks, credit unions, and other financial firms in Canada and the United States. The Company develops, maintains and delivers innovative electronic transaction processing technologies, such as customized electronic payment and collection processing solutions and gift and loyalty card services, by drawing on its operational and applications expertise.

This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ significantly from those projected herein.

The TSX Venture Exchange has not reviewed and does not accept responsibility for adequacy or accuracy of the content of the information contained herein.

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