TORONTO, ONTARIO--(Marketwired - May 9, 2014) -
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The Mint Corporation (TSX VENTURE:MIT) ("Mint" or the "Company") announced today that, at the special meeting of shareholders held on May 1, 2014, shareholders approved a loan agreement (the "Convertible Loan") between Mint and Gravitas Financial Inc. ("Gravitas") and the right granted to Gravitas to convert the Convertible Loan into common shares to become a new Control Person (as that term is defined in the policies of the TSX Venture Exchange) of Mint. Mint has no knowledge of whether Gravitas will exercise its conversion right.
Gravitas has loaned $2,621,920 to Mint under the Convertible Loan. The Convertible Loan is convertible (a) during the period ending November 25, 2014, at a price of $0.05 per share with respect to $1,500,000 and at a price of $0.055 per share with respect to $1,121,920, and (b) thereafter until November 25, 2015, at a price of $0.10 per share. Interest is payable on the Convertible Loan at 12% per annum and Gravitas may elect to convert any outstanding interest into common shares, subject to stock exchange approval and at the lowest price permitted under applicable stock exchange rules. Gravitas has agreed that until the earlier of May 22, 2015, and the occurrence of an event of default under the Convertible Loan (the "Standstill Period"), it will not acquire common shares such that Gravitas and its associates and affiliates own more than 50.1% of the issued and outstanding common shares. Taking into account the Standstill Period and the change in exercise price on November 25, 2014, and assuming there is no conversion of interest into common shares, Gravitas could exercise the conversion right under the Convertible Loan to receive up to 39,738,062 common shares (representing 60% of the common shares after conversion). The hold period associated with $1,500,000 of the Convertible Loan has expired. The hold period associated with $1,121,920 of the Convertible Loan will expire on July 29, 2014.
At the shareholders meeting, shareholders also approved (a) the change of Mint's registered office from the City of Toronto to the Town of Oakville and (b) the change of the Company's name to a name to be determined by the board of directors. The board of directors has not decided on a new name or on the date of any name change.
Mint also announces that Nicole Souadda has resigned as Corporate Secretary of the Company.
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.