TORONTO, ONTARIO--(Marketwire - May 19, 2011) -
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Mint Technology Corp. ("Mint" or the "Company") (TSX VENTURE:MIT) announces that the Company has entered into a binding Term Sheet with a Payroll Card Services provider, an arm's length company located in the Middle East, for the acquisition of the prepaid card business owned by that Company with a portfolio of approximately 160,000 prepaid cards. Mint has approximately 165,000 prepaid cards under management and has recently announced contract wins from new customers totalling a further 75,000 cards.
The acquisition price is $5,000,000, of which $1,250,000 is payable on closing (expected to be no later than June 15, 2011), $1,250,000 is payable on the transfer of the card portfolio to Mint's platform (anticipated to be 45 days after closing) and $2,500,000 is payable 135 days following closing.
The purchase is subject to the satisfaction of a number of conditions, including satisfactory due diligence, the execution of a definitive agreement of purchase and sale and TSX Venture Exchange approval.
Mint also announces that it expects to complete the first tranche of the $6 million private placement announced on March 24, 2011. Mint also expects that a second and final tranche of this placement will occur prior to June 30, 2011. Proceeds from these closings will be utilized in part to satisfy the acquisition of the prepaid card portfolio mentioned above. Mint's President and CEO, Chris Hogg, said, "This acquisition scales Mint's prepaid card business in the Middle East to double its current size and together with already announced new contracts, will position the Company to be processing in excess of 400,000 cards once completed and deployed."
Mint also announces that, by mutual agreement, TerraNova Partners LP II will not proceed with its proposed investment of $3 million in units of Mint (previously disclosed on March 24, 2011).
Mint will release a further more comprehensive news release on the acquisition, including details of the portfolio and its expected financial performance as soon as possible