SelectCore Ltd.
TSX VENTURE : SCG

SelectCore Ltd.

February 11, 2011 09:38 ET

SelectCore Provides Update on Refinancing Efforts

TORONTO, ONTARIO--(Marketwire - Feb. 11, 2011) - SelectCore Ltd. (TSX VENTURE:SCG) a leading payment and transaction processor for prepaid telecom and financial services is providing a progress update surrounding its refinancing efforts.

The Company announces that it has been in discussions with, and has received multiple term sheets and commitment letters from interested lenders. The Company is currently evaluating its options, but at this time has not accepted nor is it certain that it will accept any financing offer.

Further to the Company's press release dated October 18, 2010, SelectCore negotiated an amendment to its loan agreement with ComVest Capital II that eliminated any prepayment penalty. In consideration for this, among other amendments, the Company agreed to repay the $2.5M term loan by March 31, 2011 and the $2.5M revolving line of credit by December 31, 2011. The Company subsequently paid down $1.25M of the term loan in Q4 2010, leaving $1.25M due March 31, 2011. If the Company is successful in securing a new lender, it intends to retire the entire $3.75M balance prior to March 31, 2011. Any incremental funds raised would be used for general working capital purposes and new product launches.

The Company makes no assurance that it will be able to secure a new credit facility to retire the current debt facility in full or meet its minimum payment obligation of $1.25M by March 31, 2011.

The Company also announces that the Board of Directors has approved the issuance of 4,900,000 options to officers, directors, consultants and employees of the Company. The options are exercisable at $0.12 per share and expire in 24 months. The Company last granted stock options in August of 2009.

About SelectCore:

SelectCore is a leading payment and transaction processor utilizing its proprietary point-of-sale technology to deliver prepaid telecom and financial services to millions of credit-challenged consumers through an extensive retail network across North America. SelectCore is a public company on the TSX Venture Exchange trading under the symbol "SCG". We were ranked one of the nation's top 100 fastest-growing companies in 2006 and 2007 and 2009 by Profit100.

This news release contains projections and other forward-looking statements regarding future events. Such statements are predictions, which may involve known and unknown risks, uncertainties and other factors, which could cause the actual events or results and objections to differ materially from those expressed.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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