TORONTO, ONTARIO--(Marketwired - Feb. 2, 2017) - The Mint Corporation (TSX VENTURE:MIT) ("Mint" or the "Company") announces the following:
Mint Middle East LLC ("MME"), a company 51% owned by Mint and Mint Gateway for Electronic Payment Services LLC, a company 51% beneficially owned by Mint (together referred to as Mint Group) has signed a term sheet to acquire a UAE Central Bank licensed Financial Company through a company to be incorporated (the "Acquirer"). The purchase price is USD$27.25 million, with USD$11.7 million to be funded by end of the month of February, 2017. The Company is currently exploring options to raise the capital and expects that the capital will be raised by the Acquirer without the issuance of securities by Mint. There is no assurance that the Company can raise the required capital at this time.
The Mint Group owns the technology used to operate as a payroll card and processing services provider in the UAE. However, the Mint Group is dependent on external third party banks and other financial institutions when issuing payroll cards and offering additional financial services to its cardholders. Acquiring a licensed financial entity in the UAE will allow the Mint Group to offer a greater range of financial products and services to its cardholders and to more quickly respond to opportunities and changes in the marketplace. In particular, Mint expects that the acquisition will facilitate the launch of a lending program to payroll cardholders.
The acquisition will not constitute a non-arm's length transaction.
Completion of the acquisition is subject to conditions including the execution of a definitive agreement, stock exchange approval and the approval of the Central Bank of the United Arab Emirates.
General Disclosure Statement
Investors are encouraged to read the 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 unbanked 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.
Forward Looking Statements
This press release contains forward-looking statements. More particularly, this press release contains statements which include the USD$11.7 million required by the end of February, 2017, the reduction in the dependency on external third party banks and other financial institutions resulting from the acquisition and the statement that the acquisition will allow Mint Group to offer lending services to its customer base. The forward-looking statements are based on certain expectations and assumptions made by the Company. Although the Company believes that those expectations and assumptions are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those anticipated due to a number of factors and risks. In addition to other risks, the Company may be unable to raise the required funds by the end of February, 2017, the extent of the reduction in reliance on third party banks and financial institutions may be less than anticipated and the offering of lending services to Mint's customer base will require systems and approvals not yet in place. The forward-looking statements contained in this press release are made as of the date hereof. The Company 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 laws.
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.