The Mint Corporation
TSX VENTURE : MIT

The Mint Corporation

October 24, 2013 13:38 ET

Mint Announces Business Update

TORONTO, ONTARIO--(Marketwired - Oct. 24, 2013) -

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The Mint Corporation (TSX VENTURE:MIT) ("Mint" or the "Company") announced today that it would like to release the following business updates:

  • Financing Update

    Mint currently has $5,000,000 of listed debentures which mature today, referred to as the "Series III" debentures. The Company is currently in discussions with Series III holders to restructure the debt as Mint is unable to meet its repayment obligations at this time. Mint has received positive responses from the majority of the debt holders indicating their willingness to work with the Company towards an amicable solution. Discussions have commenced with debt holders in the remaining Series' of debentures as well with current Bridge Loan holders to form a restructuring plan for the repayment of this debt which currently stands at approximately $28,000,000. The Company anticipates completion of this overall debt restructuring within the next 4 - 6 weeks.

    On August 27, 2013, Mint announced it was proceeding with a proposed $2,000,000 private placement of common shares. The Company has decided not to proceed with this private placement at this time but anticipates reconsidering this offering before the end of the year.
  • Bridge Loan Demand Notice

    On October 4, 2013, Mint received a First Repayment Demand Notice from Global Emerging Funds Strategy Limited (the "Lender") regarding the Bridge Loan Agreement (the "Note") dated April 22, 2013 which matured on August 30, 2013. The Note includes a default interest rate of 20% per annum compounded weekly on any amount outstanding as of the date of maturity. The demand notice requires payment of all outstanding amounts due by October 18, 2013. Should the Company not reach an agreement with the lender or pay the amount due, this entitles the lender to enforce the security registered under the General Security Agreement filed in the DIFC.

    All outstanding interest payable to the Lender (USD$90,691.03) was paid on October 22, 2013. Mint is currently in negotiations with the Lender to restructure the remaining principal outstanding.
  • Director Resignation

    On October 16, 2013, Vishy Karamadam resigned as a Director of Mint. The Board is currently considering replacements for Mr. Karamadam. The Company would like to thank Mr. Karamadam for his service to 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 Mint Corporation. The following statement is only intended to inform investors on certain of the many risks associated with investing in The Mint Corporation (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. Forward looking statements include the time required to complete the debt restructuring. 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, the debt restructuring could be delayed if Mint is not able to reach agreement with its creditors or to receive any stock exchange approval required for that purpose. 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 TECHNOLOGY CORP.

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 4 subsidiaries, Mint Middle East LLC, a payroll card services provider; Mint Capital LLC, a financial products distribution company; Mint Global Processing Inc., a fully integrated third party processing platform; and MEPS, a mobile airtime POS and Merchant network solutions business.

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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