SelectCore Ltd.
TSX VENTURE : SCG

SelectCore Ltd.

August 03, 2011 13:59 ET

SelectCore Closes Initial Tranche of Private Placement

TORONTO, ONTARIO--(Marketwire - Aug. 3, 2011) - SelectCore Ltd. (the "Corporation") (TSX VENTURE:SCG), a prepaid telecom and financial services transaction processor for the under-banked consumer market is pleased to announce that it has closed the first tranche of its previously announced private placement.

The Corporation issued an aggregate of 3,333,333 units (the "Units") at $0.30 per Unit for gross proceeds of $1,000,000. Each Unit is comprised of one common share and one common share purchase warrant (the "Warrant"). Each Warrant entitles the holder thereof to acquire one common share at an exercise price of $0.35 per common share at any time on or before July 29, 2013. The common shares and warrants are subject to a regulatory four-month hold period, which expires on November 30, 2011.

In connection with the private placement, the Corporation paid two arm's length parties finder's fees of $80,000 and issued an aggregate of 266,666 broker warrants (the "Broker Warrants"). Each Broker Warrant entitles the holder thereof to acquire one Unit at an exercise price of $0.30 per Unit at any time on or before July 29, 2013.

The net proceeds from the private placement will be used by the Corporation for working capital and general corporate purposes.

Keith McKenzie, the Chief Executive Officer of the Corporation, stated "With our new long-term convertible debt facility, the recent exercise of options and warrants and proceeds from the private placement, SelectCore has a stronger balance sheet and financial base from which it can accelerate its business plan."

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. 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 and prepaid financial 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 December 31, 2010, available on www.sedar.com. 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.

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