SEL Exchange Inc.

January 07, 2015 10:12 ET

SEL Exchange Inc. Provides Corporate Update

TORONTO, ONTARIO--(Marketwired - Jan. 7, 2015) - SEL Exchange Inc. (the "Company") (TSX VENTURE:SEL) would like to provide a corporate update.

As previously reported, the Company continues to have cash flow issues. The expected revenue for the Company's wholly owned subsidiary in the United States have not materialized as anticipated and the subsidiary continues to be a negative contributor to the overall financial condition of the Company. As a result, the Company has commenced a review of the U.S. operations and will consider all options including the divesture of the subsidiary, which may include a filing under U.S. bankruptcy regulations.

The remaining subsidiary, Service Results Technology ("SRT"), remains cash flow positive but does not generate the necessary capital to cover the public company costs on an annual basis. Therefore, the Company is undertaking a strategic review of SRT and will explore all options that create value for all of its stakeholders.

The Company is in discussions with various debenture holders of the Company and are in the process of setting up a meeting with all debenture holders in January.

Pat Westfall, the Company's interim CEO, CFO and director of the Company has tendered his resignation as of Friday January 9, 2015. The Board thanks Pat for all his work during this trying time for the Company. Mark Di Cristofaro, current board member will step in as CEO to guide the Company through this next stage and oversee the strategic review of SRT. A CFO and an independent director will be named shortly.

About SEL Exchange Inc.

The Company through its two wholly owned subsidiaries, Service Results Technology Inc. and SEL Exchange USA, Inc., is dedicated to managing consumer and retail store returns and problematic electronics through a product management system. The Company manages product warranties, service repairs, consumer returns from receiving to end-of-life with quality assurance testing, factory servicing, resale through non-traditional channels and recycling of non saleable product to support a closed-loop distribution process. The Company is able to recycle the non-saleable returns it receives, thereby allowing customer returns to have a very low environmental impact. The Company currently operates in Ontario, Canada and Tennessee, USA.

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.

Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Corporation cautions investors that any forward-looking information provided by the Corporation is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the state of the financial markets for the Corporation 's securities; the state of the industry; recent market volatility; the Corporation 's ability to raise the necessary capital or to be fully able to implement its business strategies; and other risks and factors that the Corporation is unaware of at this time. The Corporation expressly disclaims any obligation to update any forward-looking statements except as may be required by law.

Contact Information

  • Mark Di Cristofaro
    Interim Chief Executive Officer