The Mint Corporation

The Mint Corporation

August 30, 2013 11:51 ET

Mint Announces Quarter 2 Results

TORONTO, ONTARIO--(Marketwired - Aug. 30, 2013) -


The Mint Corporation (previously Mint Technology Corp). ("Mint or the "Company") (TSX VENTURE:MIT) announced today that it filed its 2013 2nd Quarter ("Q2") Financial Statements, Q2 Management Discussion and Analysis ("MD&A") and related CEO and CFO Certificates for the Q2 trading performance ended June 30, 2013 (the "Q2 Filings") on August 29, 2013.

Total Revenue from operations was $1,016,184 for the quarter ended June 30, 2013, up from $959,617 for the quarter ended June 30, 2012 (+5.9%). The relatively flat revenue number is partly a reflection of the competitive market place for the Company's payroll card business in the UAE. More significantly, the Company's microfinance subsidiary Mint Capital is still constrained due to a lack of funding for the lending facilities, the source of which is still being finalized. The mobile phone top up business, Mint Electronic Payment Services LLC ("MEPS") is slowly rebuilding its business after the system changeover in Q1, but is also in need of additional working capital.

Total expenses were $6,838,681 of which expenses attributable to the Operating Businesses were $3,860,993 and the balance to corporate and non UAE business costs. This substantial increase over Q1 was largely the result of a $1.6 million write down of Advances and Deposits in the balance sheet of MEPS after a management review of the collectability of the receivables. An additional provision of $129,000 for trade accounts receivable was made in Mint Middle East LLC.

Comprehensive Net Loss attributable to continuing businesses for the three months ended June 30, 2013 was ($5,822,497) which included a Loss of ($2,974,187) derived from the corporate costs and non UAE activities of the Company compared to ($1,004,361) for the three months ended June 30, 2012.

Cash totaled $1,329,326 at June30, 2013 down from $6,354,162 (-79.1%) for the period ended June 30, 2012.

Mint's Interim Executive Chairman and Group CEO/President Nabil Bader said today, "Under the guidance of the new Board of Directors, the Company is embarking upon a new path forward that will change the business focus from one of rapid acquisitive growth to that of achieving profitable operations across the current group of companies. The business framework is developed, the team is in place and the Board is working to obtain the required working capital as reported previously."

Mr. Bader went on to say, "Management is currently reviewing the project in Egypt because of the amount of capital expenditure and working capital needed to establish the business. Management is now embarking upon a program of expense reduction and has already cancelled a number of consultant arrangements and will be restructuring its business operations to reduce costs and increase productivity. The Company faces substantial financial challenges on many fronts and the first steps are being taken in acceptance of those challenges. The Company is still losing money and will require the ongoing support of shareholders and financiers if it is to overcome the current challenges."

Forward-Looking Statements

Certain statements in this news release constitute "forward-looking" statements. These statements relate to future events or our future performance. Forward-looking statements include the expected improving operating performance. 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. Forward-looking 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, 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.


The Company operates predominantly in the Middle East It is accordingly exposed to significant political, legal and regulatory risks associated with operating in these emerging and sometimes, volatile markets. In some cases, local laws within the MENA region require the Company to appointment a local sponsor or agent, who will be granted ownership interest in the business. These arrangements present unique and significant ownership-related risks which are difficult to evaluate. 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 a subscription agreement, which would be provided to you by the Company, should an investor wish to subscribe for securities by way of a private placement financing. Investors considering purchasing securities of the Company should be able to bear the economic risk of total loss of such investment.


Established in 1997 and restructured in 2004, Mint is believed to be 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 ePAY, a mobile airtime POS and Merchant network solutions business. Mint has 121 employees in offices in the UAE, Qatar, Egypt, USA and Canada where Mint is listed on the TSX Venture Exchange: MIT.

Stock Symbol: MIT on the TSX Venture Exchange.


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