Mint Technology Corp.
TSX VENTURE : MIT
PINKSHEETS : MITJF

Mint Technology Corp.

April 30, 2012 21:19 ET

Mint Completes IFRS Accounting Standards Conversion and Files Transitional Year Financial Statements and MD&A

TORONTO, ONTARIO--(Marketwire - April 30, 2012) -

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Mint Technology Corp. (TSX VENTURE:MIT)(PINKSHEETS:MITJF) ("Mint" or "Company") announced today that is has completed the change-over from reporting in Canadian GAAP to IFRS accounting standards and filed its financial statements and MD&A for the transitional period of September 1, 2011 - December 31, 2011.

Nabil Bader, President and CEO, said today, "We are pleased in the direction of our business growth and have seen during this 4 month reporting period, our annual revenue run rate up a further 33% from the year ending August 31, 2011. With the inclusion of the new payroll cards from our 5 recent contract wins not yet loaded and the balance of the Workers Equity Holdings BSC card portfolio still being added to our platform, we anticipate improved earnings by Q2 2012."

The most significant change to IFRS reporting has required the Company to evaluate the impact of the changing value of the unexpired warrants on issue. One of the main drivers for the necessity of accounting in this manner is the fact that the functional currency of the Company is different from its reporting currency. The functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which the entity operates - in each case, the United Arab Emirates Dirham ("AED"). These consolidated financial statements are presented in Canadian dollars, which is the Company's reporting currency.

The adjustment to the transitional year financial statements includes the inclusion of a Derivative Warrant Liability ("DWL") in the Balance Sheet of $6,953,614. The effect on the Profit and Loss account was the inclusion of a DWL expense of $2,265,564. This adjustment is largely a reflection of the increasing share price relative to the exercise price of the Company's current outstanding warrants. As and when the warrants are exercised, this cost will be adjusted both through the Profit and Loss account and the Balance Sheet.

Mr. Bader also said today, "Making the transition to IFRS reporting has been challenging to our accounting team and our Balance Sheet. The inclusion of a Derivative Warrant Liability will be an issue we will endure until the current warrants are either exercised or expire. Ironically, the higher our share price moves the larger is the Derivative liability incurred."

Revenue for the Interim Period was $1,329,564, reflecting the partial impact of the Workers Equity acquisition with all those cards acquired not yet generating income. A comparison of Revenue from continuing operations period to period has to take into consideration non-recurring and other Operating Income included in Q4 2011 of $421,723. When adjusted, the Q4 2011 revenue is $884,534. On a prorated basis, this would generate a 4 month revenue of $1,179,378, an increase of 33% on a comparable basis.

The core UAE payroll card business delivered a negative EBITDA of ($305,497) for the 4 months ended December 31, 2011. However, of this amount, $289,000 was attributable to the increased costs of carrying the recently acquired Worker's Equity portfolio on a costly platform as an interim measure pending certification of the Mint Global Processing platform which has now been received. It is important to note that the "new" contracts secured as part of the Workers Equity Holdings portfolio and associated cards have not yet been loaded to the Mint platform.

In addition, this result also excludes the 5 new contracts and the 76,000 new cards previously announced by Mint on March 21, 2012. The platform therefore currently has over 185,000 new cards to load over the next 3 months now that we have our certification.

The consolidated EBITDA result for the 4 months ended December 31, 2011 was a negative ($2,714,460). Of this amount, $417,000 was attributable to non-recurring charges and as such the adjusted Consolidated EBITDA result was ($2,297,460). Mint continues to invest heavily in the expansion of the Mint Middle East activities outside of UAE in the MENA region and in particular the establishment of both offices and new contract opportunities in Qatar, Egypt and Saudi Arabia. This continues to involve significant investment in people, travel and accommodation, legal fees and professional advisors, but together with our investment in the launch of Mint Money, substantial progress has been made on the launch of the these opportunities and a return on this investment is expected over the next 3 fiscal quarters.

The total invested cost effect of the Non UAE activities on the Consolidated EBITDA figure of ($2,297,460) for the 4 month period under review was ($1,991,963).

The net loss for the 4 month period under review was $5,800,673. The movement in the net loss Q4 to Q1 included the IFRS driven derivate warrant revaluation of $2,265,564, and a number of non-recurring items totaling $417,000.

Chris Hogg, Executive Chairman, said today, "We continue to work towards achieving our Strategic Goals for 2012 and receiving the approval from the UAE Central Bank as an independent Third Party Processor in the UAE was a substantial milestone for Mint and just one of the success markers we will achieve this year. With the launch of our Mint Money product range, our business opportunities in Egypt and Saudi Arabia, together with our organic growth in UAE through our current client base we anticipate 2012 being a turning point in the Mint story."

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 improved earnings by Q2 2012 and a realization of a return on the Mint Money investment over the next 3 fiscal quarters. 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. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to earnings and a return on the Mint Money investment not improving or being realized in the time frame indicated. 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. These forward-looking statements are made as of the date of this news release. 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.

ABOUT MINT TECHNOLOGY CORP.

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 including microcredit, mobile top up and money remittance services delivered seamlessly to workers throughout the Middle East and North Africa region. Mint operates through 4 subsidiaries, Mint Middle East, a payroll card services provider, Mint Money, a financial products company, Mint Global Processing, a fully integrated third party processing platform and soon to launch, Mint Merchant Services, a POS and ATM network solutions business. Mint has 65 employees in 7 offices in UAE (2), Qatar, Jordan, Egypt, USA and Canada where Mint is listed on the Toronto Stock Exchange (TSX VENTURE:MIT).

For additional information please visit www.mintinc.com.

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