The Mint Corporation - Letter to Shareholders
Toronto, Ontario--(Newsfile Corp. - October 3, 2019) - The Mint Corporation (TSXV: MIT) ("Mint" or the "Company") today released the following letter to shareholders.
Mint management feels that it is important to provide shareholders with further clarity on the press release issued on Sept 27, 2019 titled "Mint Announces a Definitive Share Purchase Agreement and Interim Funding Agreement". The transaction described in the above-mentioned press release (the "Proposed Transaction") was an outcome of a Sales and Investment Solicitation Process (SISP) that was undertaken by the majority shareholder of Mint and managed by external advisors. Mint supported the SISP process as first disclosed in a press release dated June 5th, 2019.
This potential change in Mint's significant stakeholder was a consuming exercise for Mint's management team. Throughout the SISP process, Mint was able to ensure that the current business continued to perform while certain new initiatives were delayed until the SISP process was completed.
Management believes that the Proposed Transaction is the best outcome from the SISP process. A Share Purchase Agreement has been signed which, upon closing, will result in the transfer of the majority ownership in Mint to Global Business Services for Multimedia ("GBS"), a long-standing partner of Mint in the UAE, and its affiliate, Mobile Telecommunication Group LLC ("MTG" and together with GBS, the "Purchasers"). The Purchasers will acquire certain equity and indebtedness, as described in the press release issued on September 27, 2019, for an aggregate purchase price of $6,590,000, showing their continued commitment and belief in the value of the business, which is represented by Mint. The Proposed Transaction includes an interim funding agreement to support the business through to closing or termination of the Proposed Transaction.
Mint management views the Proposed Transaction as beneficial to advance Mint's business in the UAE. The greater alignment with our partner GBS may also open new possibilities for Mint, including the offering of its globally certified technology stack in Canada and the Americas.
Mint management believes that, once completed, the Proposed Transaction will remove the uncertainty now surrounding the Company's ownership and will lead to better prospects for the Company.
We look forward to staying in touch with our valued shareholders and updating them on business progress in the coming months.
Vishy Karamadam, CEO
The Mint Corporation
Certain statements in this news release constitute "forward-looking" statements. These statements relate to future events or our future performance. Forward-looking statements include the closing of the Proposed Transaction; the payment of funding under the interim funding agreement; and the offering of Mint's technology stack in Canada and the Americas. All such statements involve substantial known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to vary from those expressed or implied by such forward-looking statements. Forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, they should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the failure of the Proposed Transaction to close for any reason, including as a result of any failure by Gravitas Financial Inc. to obtain shareholder approval at its upcoming shareholder meeting or the failure to obtain approval from the TSX Venture Exchange of the change of control in Mint; any delays or failure of payments under the interim funding agreement; and any failure to offer Mint's technology stack to Canada and the Americas. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, The Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release.
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
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/48458