Gravitas Signs Non-Binding Letter of Intent Regarding Sale of its Securities in The Mint Corporation
Toronto, Ontario--(Newsfile Corp. - August 28, 2019) - The Mint Corporation (TSXV: MIT) (OTC Pink: MITJF) ("Mint" or the "Company") announced, on June 5, 2019, that it had agreed to support a solicitation process which could result in a change in ownership or control of the Mint shares now owned by Gravitas Financial Inc. (CSE: GFI) ("Gravitas") and other shareholders of Mint and/or debt now owing by Mint. Gravitas owns approximately 53% of the shares in Mint on a non-diluted basis.
On August 22, 2019, Gravitas announced that it had entered into a non-binding letter of intent with Global Business Services for Multimedia ("GBS") and Mobile Telecom Group LLC ("MTG" and together with GBS, the "Buyers") which sets out the key terms pursuant to which the Buyers will acquire Gravitas' shares of Mint as well as Gravitas' interest in certain outstanding loans and other indebtedness (the "Proposed Transaction"). The letter of intent further contemplates that the Buyers will also be acquiring the outstanding debentures of Mint owing to third parties (the "Debentures"). As at March 31, 2019, the total amount of debt owed by Mint to Gravitas (the "Gravitas Loans"), including principal and interest, was approximately $5.1 million and as at the date hereof, the aggregate principal amount of the Debentures is $20 million. We have been informed by Gravitas that the purchase price to be paid for the sale of the shares, the Gravitas Loans and Debentures is expected to be less than the aggregate total sum of the Gravitas Loans and the principal amount of Debentures. The Proposed Transaction is subject to prior approval by the TSX Venture Exchange.
Mint operates primarily through its subsidiaries in the UAE. In 2015, Mint entered into a management agreement with GBS under which GBS assumed oversight of the day-to-day operations of Mint's UAE operations. GBS holds a 49% interest in Mint Middle East Ltd. (formerly, Mint Middle East LLC) and Mint Gateway for Electronic Payment Services. GBS has advanced funding to Mint's UAE operations to meet capital requirements and provide working capital.
GBS is a private company headquartered in the United Arab Emirates. We have been informed by GBS that its owner is Naser Ali Husain Ali Almaira. GBS describes itself as one of the leading, dynamic and progressive technology-oriented business groups in the Middle East for the past 25 years. GBS was established in Abu Dhabi with subsidiaries in other Gulf Cooperation Counsel countries and Egypt. GBS was founded to invest and to manage entities in telecommunications, financial services, broadcasting, film and audio-visual production, and events management.
MTG is also a private company headquartered in the United Arab Emirates. MTG is an affiliate of GBS. MTG describes itself as a provider of innovative enhanced television content and applications including text streaming, bulletin boards, chatting, gaming, voting and polling, sweepstakes, quizzes, MMS to TV, TV to MMS, automatic scheduling and play-list editing, and market analysis and Customer Related Management (CRM) tools. MSG also offers a sophisticated messaging system that allows businesses to send targeted SMS messages from any PC or browser-related terminal to their customer, either in bulk messaging or personal messages.
"We are pleased that Gravitas has entered into the non-binding letter of intent with GBS. GBS has been a long-term strategic partner of Mint in the UAE and helped in the restructuring and scaling up our Middle East operations over the years. We look forward to working with them closely in the future and believe their involvement will help in enhancing shareholder value." - states Vishy Karamadam, CEO of The Mint Corporation.
On July 12, 2019, Mint announced that it had implemented a deferred compensation plan (the "Plan") under which $140,832 of bonus compensation had been allocated. Under the Plan, service providers agreed to work at a reduced cash rate in return for bonus compensation which is (i) deferred, (ii) convertible into common shares of Mint at the election of Mint or the service provider, and (iii) otherwise payable in cash. All of the bonus compensation has now vested and is convertible into common shares of Mint at a price of $0.05 per share. The Plan and the issuance of common shares under the Plan is subject to TSX Venture Exchange approval and will likely be subject to disinterested shareholder approval.
The Mint Corporation through its majority-owned subsidiaries (the "Mint Group"), is a globally certified payments company headquartered in Toronto, Canada with its primary business in Dubai, UAE. The Mint Group provides employers, employees and merchants with best-in-class financial services supported via payroll cards and the feature rich and linked Mint mobile application. Through its mobile enabled payments platform certified globally by Mastercard and UnionPay, Mint brings modern financial conveniences, at reasonable cost, to employers, merchants and consumers.
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
The Mint Corporation
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