The Mint Corporation
TSX VENTURE : MIT

The Mint Corporation

May 16, 2014 09:16 ET

Mint Announces Subscription Receipt Closing

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 on May 15, 2014, it completed a private placement of 15,000 subscription receipts (the "Subscription Receipts") for $1,000 each (the "Third Closing"). The Third Closing is the third and final tranche of the Company's private placement (the "Private Placement") announced on November 11, 2013 and described also in the Company's press release of January 3, 2014. In total, the Company has issued 39,827 Subscription Receipts pursuant to the Private Placement. The Subscription Receipts will automatically convert into Series A Debentures (the "Conversion") upon the satisfaction of certain conditions described in the prior press release.

Portfolio Strategies Securities Inc. (the "Agent") acted as agent in the Private Placement. The Agent is entitled to receive a cash commission of $750,000 upon Conversion. The Company also issued broker warrants exercisable for up to 1,500,000 common shares of Mint at a price of $0.15 per share during the 4 years following the Conversion. The broker warrants and any common shares issued under them are subject to a hold period expiring on September 16, 2014.

The Corporation has eight series of debentures outstanding. Its Series I Debentures, Series II Debentures, Series III Debentures (denominated in Canadian dollars), Series III Debentures (denominated in US dollars) and the Series VI Debentures are listed on the Canadian Securities Exchange. Series III, IV and V have matured and remain unpaid, while interest is overdue on Series I, II, III, IV, V, VI and VII causing them to be in default. The Company expects to be able to clear the defaults on all series subsequent to the release of funds from escrow described above. The following is a summary of the principal and interest outstanding for each series of the Company's debentures as of May 15, 2014:

Series Principal Outstanding Interest Owing
Series I (USD) 569,750 56,223
Series II (USD) 1,355,400 106,193
Series III (USD) 3,370,000 333,647
Series III (CAD) 1,227,000 121,479
Series IV (CAD) 710,000 90,116
Series V (CAD) 2,534,000 317,110
Series VI (USD) 300,000 25,840
Series VI (CAD) 4,496,500 387,323
Series VII (CAD) 2,226,800 238,656
Series B (CAD) 5,501,000 20,798

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.

Contact Information

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