TORONTO, ONTARIO--(Marketwired - Feb. 11, 2014) -
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The Board of Directors of SelectCore Ltd. ("SelectCore Payments" or the "Company") (TSX VENTURE:SCG) is pleased to announce a new strategic course aimed at strengthening the Company's balance sheet. One component of this course may be the Company seeking to complete a non-brokered private offering (the "Offering") of Series A Preferred Shares at a price and quantity to be determined. While the Company has initiated discussions with various parties, no terms have been finalized and the offering would be subject to TSX Venture Exchange approval. Management believes that the current share price does not reflect the true value of the Company and as such an equity financing of common shares would be far too dilutive to existing shareholders and new long term debt would not be in the best interests of the Company.
Another component of the strategy may be the Company seeking to divest its non-core, legacy telecom assets (the "Divesture"). While the Company has initiated discussions with interested parties, no terms have been finalized.
There are no guarantees the Company will be successful in completing the Offering or the Divesture. In any event, the Company intends to use the proceeds to improve its working capital position and support its financial services business.
About SelectCore Payments
SelectCore Payments (TSX VENTURE:SCG) is a pioneer and leader in prepaid payment solutions for underserved markets. Founded in 1999, the Company offers a range of prepaid products and services from stored-value cards to mobile top-up that provide financial empowerment to a market of millions of under-banked consumers. SelectCore has been recognized as one of Canada's Fastest-Growing Companies by Profit100, North America's Fastest-Growing Technology Companies by Deloitte Fast500, Canada's Top Tech Companies by Branham300 and Canada's Leading Payments Organization by Payments Exchange.
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.
Certain information in this news release contains forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond SelectCore's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of exchange rates, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect SelectCore's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and SelectCore does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.