TORONTO, ON--(Marketwired - June 30, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
The Mint Corporation (TSX VENTURE: MIT) (the "Company" or "Mint") is pleased to announce the closing of its rights offering originally announced on May 26, 2016.
Upon closing of the rights offering, the Company issued 51,379,952 common shares for aggregate gross proceeds of $2,568,997. The rights offering was not over-subscribed and, as a result, all subscribers received the number of common shares for which they subscribed and no funds are required to be returned to investors.
Under the terms of the rights offering, each eligible securityholder was entitled to subscribe for one common share for each common share held by such securityholder (the "Basic Subscription Privilege"). The rights offering included an additional subscription privilege (the "Additional Subscription Privilege") under which eligible securityholders were entitled to subscribe for common shares not otherwise subscribed for under the Basic Subscription Privilege. The Company issued 49,983,802 common shares under the Basic Subscription Privilege, of which 46,879,277 common shares were issued to insiders of the Company as a group. The Company issued 1,396,150 common shares under the Additional Subscription Privilege, of which 72,000 common shares were issued to insiders of the Company as a group.
There was no stand-by commitment for the rights offering.
The Company did not retain any person to organize or participate in the solicitation of the exercise of rights under the rights offering. Accordingly, the Company did not pay any fees or commissions relating to the solicitation of the exercise of rights in connection with the rights offering.
The rights offering triggered the adjustment provisions of the outstanding common shares purchased warrants issued by Mint. Those provisions operate by adjusting the number of common shares issued upon exercise of the warrants. The number of common shares received upon exercise of the outstanding warrants will be 122.06% of the number which would have been received if those warrants had been exercised prior to the rights offering. This adjustment does not apply to 10,000,000 warrants issued to Gravitas Financial Inc. on June 23, 2015 and 500,000 broker warrants issued on that date.
Following completion of the rights offering there are 125,022,742 common shares issued and outstanding.
General Disclosure Statement
Investors are encouraged to read the Company's 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. It is exposed to significant political, legal and regulatory risks associated with operating in this emerging and volatile market. The key management personnel and operations of the Company are based in countries which do not have strong and reliable judicial enforcement. This results 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 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 investing 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 a vertically integrated prepaid card and payroll services provider with its own processing platform, ATM network and proprietary branded card products delivered to workers in the United Arab Emirates. Mint operates as a payroll card and processing services provider in the UAE through its ownership in Mint Middle East LLC and Mint Gateway for Electronic Payment Services LLC.
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.