SelectCore Ltd.
TSX VENTURE : SCG

SelectCore Ltd.

August 30, 2011 19:23 ET

SelectCore Releases Financial Results for Q2, 2011

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2011) - SelectCore Ltd. (TSX VENTURE:SCG), a provider of prepaid telecom and financial solutions for the credit challenged and under-banked consumer market is pleased to report its financial results for the second quarter ended June 30, 2011.

Q2 FINANCIAL HIGHLIGHTS:

  • Revenues for the period were $22,027,417
  • Gross profit for the period was $1,478,083
  • Gross margin for the period was 6.71%
  • Net loss for the period was $0.005 per share
  • Adjusted EBITDA for the period was $408,996

The Company's Financial Statements and Management Discussion and Analysis for the three months ending June 30, 2011 are available on SEDAR at www.sedar.com.

Q2 KEY MILESTONES:

  • Bryan Kenyon, former Director of Financial Planning & Analysis for Green Dot joined SelectCore as Senior Advisor to assist the Company's launch of ReCash
  • Positive key performance indicators realized for Iridium MasterCard
  • Signed exclusive Iridium sales agreement for multiple GTA mall locations
  • Commenced efforts to expand Iridium MasterCard into the US market
  • Filed patent for ReCash technology with the Canadian Intellectual Property Office
  • Ranked one of Canada's Fastest-Growing Companies by Profit Magazine
  • Launched instant online reloads with Interac Online for Iridium MasterCard
  • Announced development of new mobile remittance platform offering North American consumers a free and instant money transfer solution
  • Signed 3 year service agreement with Hudson Bay Company
  • Made significant progress towards transitioning the Company into the high-margin prepaid financial services space.

IMPROVED FINANCIAL POSITION:

In the second quarter, Senior Management focused their efforts on securing new debt and equity financing to improve the Company's working capital position and provide the necessary growth capital to execute on its business plan and accelerate the roll out of its new offerings including Iridium MasterCard, ReCash and its Mobile Remittance platform.

In the second quarter and subsequent to June end, the Company significantly improved its balance sheet and financial position through proceeds of approximately $1,500,000 from the exercise of warrants and options in addition to gross proceeds of $1,000,000 from its initial tranche of its recently announced Private Placement. The Company also secured a new $5,000,000 long-term convertible debt facility with its senior lender which pending regulatory approval. The Company plans to announce the closing of its new facility and subsequent tranches of its private placement.

Keith McKenzie, CEO of SelectCore commented "The Company has been making significant progress towards its transition into the high-margin prepaid financial services space. We believe that our current financing efforts will propel the execution of our growth strategy to drive profitability and long term shareholder value"

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 million of unbanked and credit-challenged consumers through its extensive retail distribution network across Canada and the United States. SelectCore is listed on the TSX Venture Exchange under the symbol "SCG" (TSX VENTURE:SCG). SelectCore was ranked by Profit100 Magazine as one of Canada's fastest growing companies in 2006, 2007, 2009 and 2010.

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 June 30, 2011, 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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