TORONTO, ONTARIO -- (Marketwired) -- 02/22/17 -- The Mint Corporation (TSX VENTURE: MIT) ("Mint" or the "Company") announces that it intends to make a proposal to the holders of its Series B Debentures and that it intends to enter into discussions with some of the larger holders of those debentures and their representatives for that purpose.
The Series B Debentures mature on March 7, 2017, at which time the Company is obligated to repay the outstanding principal amount of $3,452,000 plus interest (including bonus interest) of $1,357,470. Mint does not have sufficient cash to make any of these payments. The Series B Debentures rank behind $49,019,962 of Series A Debentures.
The Series B Debentures were issued in March 2014 as part of a restructuring of the debt of Mint. Since that time, Mint has made significant progress in the development of its payments platform.
Mint Middle East LLC ("MME"), a company 51% owned by Mint and Mint Gateway for Electronic Payment Services LLC; a company 51% beneficially owned by Mint (together referred to as Mint Group) has achieved several operational milestones including achieving Payment Card Industry Data Security Standard (PCI DSS) certification and a partnership agreement with UnionPay International to issue UnionPay cards in association with Mint Group's partner banks. Significant challenges remain and it will require time, additional capital and management team efforts to realize fully the potential of this platform.
General Disclosure Statement
Investors are encouraged to read the Management Discussion and Analysis Documents filed on SEDAR for a description of additional risks associated with investing in the Company. The following statement is only intended to inform investors on certain of the many risks associated with investing in the Company. The Company operates predominantly in the Middle East. It is exposed to significant political, legal and regulatory risks associated with operating in this emerging and volatile market. The key management personnel and operations of the Company are based in countries which do not have strong and reliable judicial enforcement. This results in additional risk with respect to the enforcement of legal and contractual rights, including, for example but without limitation, the enforcement of the rights of creditors, the protection of intellectual property rights, the enforcement of joint venture arrangements, and binding key employees with non-compete agreements. Since inception, the Company has not reached profitability. The Company relies heavily on debt financing to fund its business plan. This has exposed the Company to unique financial risks associated with significantly higher than normal debt levels. Investors in the company are strongly encouraged to be aware of the significant risks of the Company, to conduct additional due diligence and to seek the help of a licensed investment advisor before investing in securities of the Company. Moreover, investors must be aware that the purchase of the Company's securities involves a number of additional significant risks and uncertainties, as disclosed in the Management Discussion and Analysis reports filed on SEDAR by the Company. Investors considering purchasing securities of the Company should be able to bear the economic risk of total loss of such investment.
About The Mint Corporation
Established in 2004, Mint is a vertically integrated prepaid card and payroll services provider with its own processing platform, ATM network and proprietary branded card products delivered to unbanked workers in the United Arab Emirates. Mint operates as a payroll card and processing services provider in the UAE through its ownership in Mint Middle East LLC and Mint Gateway for Electronic Payment Services LLC.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
The Mint Corporation
Kym No
Interim CFO
647-252-1664
www.themintcorp.com
