Big Names Now Inhttps://www.smallcappower.com/articles/mint_technology_update_08_06_2011.html
Prominent Investment Firm Takes A Significant Stake In Prepaid Card Leader Mint (TSXV: MIT)
by Ubika Research on Jun 08, 2011
Ubika Research noted through the insider filing data dated June 6,2011 that Portland Investment Counsel owned by very successful and highprofile investor Michael Lee Chin has acquired 12.5 million shares inMint Technology (TSX VENTURE: MIT) (CVE: MIT) at 12. 5 cents. Thefiling also mentions Portland Investment Counsel having acquired 12.5million warrants as well. While we have no way to verify, we believethis position may have been acquired through the recent privateplacement. While in absolute dollars this may not be a huge investmentfor Portland, nor do we know the circumstances or rationale for thisinvestment, this represents over 10% of Mint’s share outstanding. Hence,the insider report was filed.
Michael Lee Chin requires no introduction. He is a very successfulinvestor and entrepreneur having transformed AIC Mutual in to one of thetop mutual fund companies in Canada. He has been also involved innumerous other successful ventures. We believe that acquiring a highprofile investor like Portland for a small cap name like Mint representsanother endorsement of the prospects for Mint. Ubika Research iscurrently covering Mint and we have been writing about Mint over thelast few months. All TSXV: MIT research reports (to be released soon)and analyst commentaries are available on their Investor Hub here.
Mint Technology Corporation (TSX VENTURE: MIT) (CVE: MIT)headquartered in Toronto Canada, through its subsidiary Mint Middle EastLLC, is a major provider of prepaid debit cards and alternativefinancial services to the un-banked or under-banked worker segment inDubai. Unlike traditional prepaid card providers Mint offers a payrollsolution for employers that in turn lead to employers mandating Mintprepaid cards for all their employees. Employee’s wages get loaded ontoa Mint card. Mint has an attractive business model of recurring andlonger term revenue from its customer contracts, unlike traditionalprepaid cards which are essentially “use and throw” cards with shortshelf life. The recent acquisition (announced on May 19th 2011) alongwith the recent wins from new customers totalling a further 75,000 cardsshould take the total card base for Mint to over 400,000 cards inUnited Arab Emirates (UAE).
Mint derives revenues primarily from set up fees and subsequentpayroll processing fees (monthly fees) charged to their corporateclients based upon the number of active cardholders per month. Mint’scard solution for payroll processing is ideal for companies withseasonal and migrant workers as it avoids the need for bank account,credit checks, credit history, or permanent employment, and ensurescompliance with the local laws, which mandate electronic payment forunbanked migrant workers introduced in UAE in 2009. Unlike typicalprepaid card providers Mint has sticky relationships with cardholders astheir pay is loaded to Mint cards. This makes Mint cards an essentialpart of their customer’s wallet. Given the sticky nature of customerrelationships, Mint is well positioned to offer value added services toits card holder base with services like money remittance, mobile topups, micro credit etc.
The Middle East is a fast growing market for prepaid cards. Forexample, Visa saw a 182 percent growth in the prepaid card sector in theMiddle East last year making it their fastest growing prepaid market.Mint has established a significant presence in Dubai, United ArabEmirates (UAE) and is now looking to expand its marketing footprint byentering other markets like Saudi Arabia and Jordan. The news thatMichael Lee-Chin’s investment firm Portland Investment Counsel hasacquired a significant stake in Mint gives us more indication that Mintis attracting investor interest.
To learn more about Mint and view our analyst commentaries and CEOvideo interview with Mint President and CEO, Mr. Chris Hogg pleasevisit:
https://www.smallcappower.com/microsite/mint_technology_corp.html