TORONTO, ONTARIO--(Marketwire - Jan. 10, 2013) - SelectCore Ltd. ("SelectCore" or the "Company") (TSX VENTURE:SCG) a leader in prepaid payment solutions is pleased to provide a corporate update as it moves forward with its strategic growth initiatives for 2013.
2012 was a pivotal year for SelectCore having achieved several important milestones including the successful launch and rollout of phase one of the City of Toronto City Services Benefits Card for the disbursement of Ontario Works social assistance.
In September, the Company completed a $5.7 equity financing round, significantly improving our balance sheet and financial position. We also reduced our long-term debt in 2012 from $5M to $3M.
SelectCore remains the only provider in North America to have implemented a prepaid EMV chip and PIN instant issue card program - giving us a distinct market position and first-mover advantage in this rapidly growing industry. We are now targeting other government agencies looking for more streamlined and cost-effective delivery of benefits and funds disbursement. There is a growing demand for prepaid card and cheque replacement solutions at all levels of government. In Canada alone, the Task Force for the Payments System Review has set forth recommendations to reduce the use of cheques by 80 percent. SelectCore is well positioned to address this market demand by leveraging the combined synergies of our proprietary technology, infrastructure, capabilities and expertise.
Other target markets include Latin America and the Caribbean where the Company is currently negotiating and pursuing multiple corporate and public sector opportunities. Prepaid payment cards are still at its infancy in these regions, which is home to nearly 400 million underbanked consumers. Government agencies, corporations and consumers alike are primed to benefit from the cost-efficiencies, convenience and security of migrating away from cash and cheques to electronic forms of payment. According to Boston Consulting Group, the addressable market for open-loop prepaid card spending in Latin America and the Caribbean (LAC) will rise to USD 81 billion in 2017.
We remain steadfast in our product development initiatives as it relates to new technology and the rollout of mobile, remittance and cash reload applications. SelectCore is also establishing key partnerships to strengthen our market position and is working closely with major industry players including MasterCard (NYSE:MA) and Visa (NYSE:V).
"2013 will be a year for continued growth and a renewed focus on increasing the Company's share price and driving long-term shareholder value," commented Keith McKenzie, CEO of SelectCore. "We are bullish on our current opportunities and prospects as an emerging leader in the global prepaid space".
SelectCore Ltd. (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 ranked among Canada's fastest growing companies by Profit Magazine four times in the past six years and was included in the 2011 Deloitte Technology Fast 500 list of North America's fastest-growing technology companies. For more information visit www.selectcore.com.
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 in this press release includes our expectation on implementation of the program and expected date of further press release. 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 the regulatory approval process, 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 most recent financial reporting period, 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.
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