TORONTO, ONTARIO--(Marketwired - Jan. 8, 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") would like to update the market on its current debt restructuring options as per the November 11, 2013 and January 3, 2014 announcements.
As stated in the Company's November 11, 2013 announcement, Mint is currently in the process of raising new funds and closing the exchange of certain of its Series 1 through 7 debentures for subscription receipts convertible into Series A Debentures or units consisting of warrants and Series B Debentures. Existing secured debt holders have been contacted and given the option to exchange their current holdings of debentures for subscription receipts or units. At least 50% of the subscription price for any subscription receipts must be paid in cash. Any outstanding debentures exchanged for subscription receipts, see release dated November 11, 2013, will be valued at the amount of principal and interest owing under those debentures on the date the subscription receipts are converted to Series A Debentures. In the case of debentures exchange for units, the debentures so exchanged will be valued at 80% of the amount of principal and interest owing under those debentures on the date of closing.
The Company is currently in arrears on the following interest payments: Series 1, October 25, 2013 payment; Series 2, December 23, 2013 payment; Series 3, October 24, 2013 payment; Series 4, August, 13, 2013 and November 13, 2013; Series 5, August 8, 2013 and November 8, 2013, Series 6, September 30, 2013 and December 30, 2013; Series 7, September 30, 2013 and December 30, 2013. The total amount of interest outstanding as of January 7, 2014 is $1,375,000.
As per the announcement on January 3, 2014, Mint has completed the private placement of 15,021 subscription receipts for $1,000 each paid in cash and anticipates further closings on subscription receipts and units within the next 10 to 15 days.
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 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 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 or contact: The Mint Corporation