TORONTO, ONTARIO--(Marketwire - Jan. 4, 2013) -
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION TO U.S. NEWS WIRE SERVICES
The Futura Loyalty Group Inc. (TSX VENTURE:FUT) ("Futura" or the "Company") previously announced that it was seeking opportunities through a bidding process under the Companies Creditors Arrangement Act (the "CCAA") for: (a) an investment in the Company that would allow it to execute a business plan to achieve profitability; (b) a company with which to merge; and/or (c) entities that would be interested in acquiring some or all of its assets.
The Company's intent was to complete one or more transactions with winning bidders by December 31, 2012. Futura did receive numerous bids pursuant to the CCAA process, and is continuing to negotiate with two parties with the intent of completing one or more transactions by January 18, 2013, being the date which the Company currently has court approval to operate under CCAA protection. If it appears that it will not be feasible to complete the transaction or transactions contemplated by January 18, 2013, then Futura will likely seek an extension of its CCAA protection.
While the Company is going through this process, the Company continues to operate and transact issuance for existing and new customers. However, any rewards that were earned in the Futura Rewards Program prior to October 16, 2012, being the date that Futura was granted CCAA protection, are considered amounts owing to unsecured creditors and will not be paid out. Proceeds on disposition of Futura's business and assets are unlikely to be sufficient to pay these amounts owing to Futura's unsecured creditors, which include Futura Rewards Members. That being said, Futura Rewards earned from October 16, 2012 onward will continue to accrue and be paid out in conjunction with the Futura Rewards Program guidelines and it is possible that the party acquiring the Futura Rewards Program line of business would choose to reinstate some of the lost rewards, but this would be at the acquirer's discretion and entirely voluntary.
About The Futura Loyalty Group Inc.
The Futura Loyalty Group Inc. is an industry-leading provider of integrated and stand-alone loyalty solutions for Canadian and American businesses. Futura offers a comprehensive suite of loyalty products and services including access to Aeroplan in Canada and four top frequent flyer programs in the United States. Futura also develops custom programs for companies wishing to develop proprietary loyalty solutions. Futura's loyalty services include member account set up, management and reward redemption platform, a web-based program transaction reporting interface for merchants, a robust offer management system, retail POS Integration for card swipe issuance, loyalty analytics and a proprietary web based reward issuance solution. For more information regarding Futura, visit www.tflg.ca or www.futuraloyaltygroup.com.
Information about Futura's CCAA proceeding, including copies of all Court Orders made, will be available on the Monitor's website at www.harrisreceivers.com/document_library.html.
This news release includes certain forward-looking information that is based upon current expectations, which involve, among other things, risks and uncertainties associated with Futura's business and the restructuring process. Forward-looking information in this news release includes, among other things, statements with respect to the timing and continuance of CCAA protection, the restructuring process and potential opportunities for the restructured business. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking information, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", "will", "may", "should", "could", and similar expressions to the extent they relate to Futura or its management. Forward looking information is not historical fact, but reflects Futura's current expectations regarding future results or events. Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the actual results of Futura to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Futura. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in general economic and market conditions; the uncertainty involved in court proceedings; changes to regulations affecting Futura's activities; the level of merchant participation in Futura's programs; uncertainties relating to the availability and costs of financing needed in the future; the ongoing operation of Futura's business and other factors, including without limitation, those listed under "Economic Dependence" and "Risks and Uncertainties" in Futura's MD&A for the three and twelve month periods ended December 31, 2011.
Neither the 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.