TORONTO, ONTARIO--(Marketwired - Jan. 26, 2015) -
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SelectCore Ltd. ("SelectCore" or the "Company") (TSX VENTURE:SCG) announces that it is working on a multifaceted restructuring plan (the "Restructuring") to address the Company's senior secured debt, unsecured debt, working capital deficit as well as its legacy operating divisions and overall growth strategy for its financial services division.
The Company's senior loan facility with 1889072 Ontario Ltd. (the "Lender") matures January 31, 2015. The Lender does not wish to extend, nor does the Company have available funds at this time to pay off, the facility. As such, the Company is negotiating a standstill agreement (the "Agreement") with the Lender pursuant to Form 51-F3 Material Change Report filed January 23, 2015. The Agreement is intended to provide the Company with the necessary time to complete all or parts of the Restructuring.
The Company is also considering a stock consolidation as previously approved by shareholders at the Company's Annual General Meeting held August 8, 2014.
The intent of the Restructuring is to significantly improve the Company's balance sheet while allowing it to focus on growing its core financial services business and restoring long-term shareholder value.
Any Restructuring or the Agreement may be subject to various approvals and there is no guarantee that any of such will be successfully completed. If not completed, the Company's ability to continue as a going concern would be significantly affected.
About SelectCore:
SelectCore Ltd. (TSX VENTURE:SCG) is a pioneer and leader in alternative prepaid payment solutions for underserved markets. Founded in 1999, the Company offers a range of prepaid products and services that provide financial empowerment to a market of millions of under-banked consumers. SelectCore has been recognized as one of Canada's Fastest-Growing Companies by Profit100, North America's Fastest-Growing Technology companies by Deloitte Fast500, Canada's Top Tech Companies by Branham300 and Canada's Leading Payments Organization by Payments Exchange.
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.
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 the regulatory approval process, 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 most recent financial reporting period, 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.