The Mint Corporation
TSX VENTURE : MIT

The Mint Corporation

May 16, 2014 16:16 ET

Mint Announces Release of Escrowed Funds and Settlement of Debts

TORONTO, ONTARIO--(Marketwired - May 16, 2014) -

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

The Mint Corporation (TSX VENTURE:MIT) ("Mint" or the "Company") is pleased to announce that it has completed the conversion (the "Conversion") of 39,827 subscription receipts (the "Subscription Receipts") to 40,828 Series A Debentures, following the satisfaction of certain escrow release conditions. The Conversion follows three closings in which Mint issued 39,827 Subscription Receipts in a private placement (the "Private Placement") announced on November 11, 2013. Gross cash proceeds from the Private Placement totaled $30,021,000. In addition, previously issued debentures of Mint on which the Company owed $10,807,000 were exchanged for Series A Debentures at the time of Conversion.

As a result of previous bridge lending agreements entered into by the Company, the Company immediately repaid certain bridge loans and accrued interest on those loans of approximately $4.1 million to three different bridge lenders. In addition the Company paid a total of $1,500,000 in commissions based on the cash proceeds raised through the Private Placement. The Company received net proceeds of approximately $24 million after accounting for the above noted items.

The funds received by the Company will be used to repay various loans, repay previously issued debentures that have matured and/or have arrears interest, catch up on staff salaries and amounts owing to vendor/suppliers, as well as certain expenses associated with the Private Placement. The Company has also identified opportunities to repurchase previously issued debentures at a discount. The balance of funds will be used for general corporate purposes and working capital over the next 12 to 24 months as Mint focuses on its operations and identifying further opportunities for cost savings.

The Company also announces that it has settled the previously announced litigation involving certain investors of Mint. The Company has arranged the purchase of certain debentures from these investors, having a face value and accrued interest of approximately $2 million, for approximately $1.3 million, as well as the payment of certain costs in exchange for settling all claims against the Company.

The Canadian Securities Exchange has approved the listing of the Series A Debentures, with trading expected to begin on May 20, 2014.

GENERAL DISCLOSURE STATEMENT

Investors are encouraged to read the most recent Management Discussion and Analysis Documents filed on SEDAR for a description of additional risks associated with investing in the Company. The following statement is only intended to inform investors on certain of the many risks associated with investing in 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.

ABOUT THE MINT CORPORATION

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.

For additional information please visit www.mintinc.com.

Contact Information

  • The Mint Corporation
    Pierre G. Gagnon
    Chief Executive Officer
    (905) 467-4709
    www.mintinc.com