SelectCore Ltd.

SelectCore Ltd.

March 21, 2011 07:30 ET

SelectCore Announces Key Strategic Financing Vehicles. Pays Out Comvest Capital in Full

TORONTO, ONTARIO--(Marketwire - March 21, 2011) - SelectCore Ltd. (TSX VENTURE:SCG) ("SelectCore" or the "Company"), a leading payment and transaction processor for the prepaid industry, is pleased to announce that subsequent to paying down $1.25M of the company's senior debt in the last quarter of 2010, it has now paid out Comvest Capital II, L.P. in full and in advance of the March 31st and December 31st 2011 due dates.

The company has obtained a new senior, secured loan facility in the amount of $2.9M from Windsor Bancorp Limited Partnership and a $1.12M subordinate, secured loan from Digital Telecom Inc. (collectively, the "Loans").

The senior loan matures July 2011 and may be extended up to an additional 5 months. The subordinate loan matures March 2012. Both Loans bear an interest rate of 9.5% per annum.

In connection with this financing, SelectCore issued 2.9 million bonus common shares in its capital (the "Bonus Shares") from treasury, and an aggregate of 4.02 million warrants (each a "Warrant"). Each Warrants is exercisable into one common share for periods matching the maturity of the facilities (as extended) at the following strike prices: 1.34 million at $0.25 per share, 1.34 million at $0.30 per share and 1.34 million at $0.35 per share.

Further to the press released February 11, 2011, SelectCore announces that it has also entered into non-binding term sheets with certain prospective lenders to provide the company with long-term debt financing facilities if required. The Loans, however, provide SelectCore with a substantial amount of flexibility and time to weigh all strategic financing options.

SelectCore believes that the Loans will allow it to focus primarily on the success of the business as they do not contain certain onerous covenants which past financing arrangements contained and which limited the Company's freedom to fully execute on its strategic plans. The Loans also streamline SelectCore's reporting practices to its lenders.

SelectCore now plans to focus on maturing its prepaid financial services business including the nation-wide rollouts of Iridium MasterCard and ReCash – Canada's first ubiquitous cash reload network.

Keith McKenzie, CEO of SelectCore commented "These refinancing initiatives are a key milestone to increasing shareholder value. We are excited about our ability to move forward and execute on our growth strategy."

About SelectCore:

SelectCore is a leading provider of transaction processing and point-of-sale solutions for the prepaid telecom market and financial services sector. From prepaid mobile top-up to stored-value cards, SelectCore services a market of nearly 80 million underserved and credit-challenged consumers through its extensive retail distribution network. A public company trading under the symbol "SCG" on the TSX Venture Exchange, SelectCore was ranked by Profit100 Magazine as one of Canada's fastest growing companies in 2006, 2007 and 2009.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the Company's debt financing arrangements with Windsor Bancorp Limited Partnership and Digital Telecom Inc. and the Company's future plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks related to market and financing conditions as well as risks associated with the prepaid telecom, prepaid financial and transaction-based point of sale activation industries, changes in project parameters as plans continue to be refined as well as those risk factors discussed in the Company's management's discussion and analysis for the period ended September 30, 2010, available on Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. the Company does not undertake to update any forward-looking information contained herein, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information