Connect with us
Prague Gaming & TECH Summit 2025 (25-26 March)

Fintech

Mint Provides Additional Disclosure Regarding Debt Settlement

Published

on

Toronto, Ontario–(Newsfile Corp. – September 24, 2021) – The Mint Corporation (TSXV: MIT) (“Mint” or the “Company“) announces that further to its press release dated September 7, 2021 and its management information circular dated August 31, 2021 (the “Circular“) it wishes to provide additional information pursuant to Multilateral Instrument 61-101 – Protection of Minority Holders in Special Transactions (“MI 61-101“), relating to the timeline, background, and summary of the negotiation process of the previously announced proposed debt settlement (the “Debt Settlement“) and debt settlement agreement (the “Agreement“) with Mobile Telecommunications Group LLC (“MTG“), Global Business Services for Multimedia (“GBS” and together with MTG, the “Creditors“), Mint Middle East LLC (“MME“), and Mint Gateway for Electronic Payment Services (“MGEPS“).

To provide the shareholders of the Company (“Shareholders“) additional time to consider and to vote upon the Debt Settlement, the Company will now hold its annual general and special shareholder meeting on October 7, 2021 at 10:00 a.m. (Toronto time) (the “Meeting“) (previously scheduled for, September 30, 2021 at 10:00 a.m. (Toronto time)). As such, the proxy cut-off time for the Meeting will now be October 5, 2021 at 10:00 a.m. (Toronto time). The Meeting will still be held at the Company’s office located at 33 Bay Street, Suite 1700, Toronto, Ontario, but to mitigate the risk and spread of the COVID-19 virus, Shareholders are strongly encouraged to attend the Meeting virtually through dialing 1-855-473-1059, Participant Code: 0091269#. A new management information circular will not be mailed out to Shareholders in connection with the new date of the Meeting. A copy of the Circular was mailed out to Shareholders on September 2, 2021 and can be found on the Company’s SEDAR profile at www.sedar.com or on the Company’s website at www.themintcorp.com.

Timeline and Background of Debt Settlement

In June 2020, the board of directors of the Company (the “Board“) began discussing the urgency for the Company to clean-up its balance sheet, and in particular the Company’s debt owing to the Creditors in the amount of approximately CA$20,000,000 (the “Debt“), which was secured against all assets of the Company and coming due on December 2021. In addition, there was approximately CA$2,000,000 in an interest payment due to the Creditors annually.

On June 24, 2020, Vishy Karamadam, Chief Executive Officer and Director of the Company, initiated discussions with regards to restructuring of the Debt with the Creditors based off the Company’s anticipated difficulties to meet the repayment obligations.

Over the next few months, Mr. Karamdam and the Creditors held various discussions regarding the benefits of restructuring the Debt, which eventually led to the Company proposing a settlement of the Debt through a payment of C$10,000,000 – which was rejected by the Creditors. Throughout the discussion, Mr. Karamdam kept independent member of the Board, Vikas Ranjan abreast of the progress in the talks with the Creditors; and kept the rest of the Board members periodically updated on the progress – with the exception of Firas Al Fraih, as he is a director of GBS, and as such, the Company implemented a Chinese wall with respect to Mr. Al Fraih’s involvement and he was not involved in any discussions or updates with respect to the talks from the Company’s side.

On December 15, 2020, the Creditors and the Company informally agreed on a framework for a settlement of the Debt being in the amount of US$10,000,000. In connection with this framework, the Company would receive from its United Arab of Emirates’ entities (the “UAE Entities“) a payment of US$11,000,000 (the “UAE Payment“) to settle a previous inter-company debt (the “Inter-Company Debt“) owed by the UAE Entities to the Company in the amount of C$40,000,000, an amount which was previously written-off by the Company. The Inter-Company Debt was initially provided through various advances to the UAE Entities beginning approximately 12 years ago to fund the working capital requirements of the UAE Entities’ business. However, such advances were written off in connection with audit requirements of the Company over the years, as further disclosed in the notes of the Company’s financial statements available on the Company’s SEDAR profile. The Company had previously discussed the settlement of the Inter-Company Debt with the UAE Entities, but such discussions were never able to materialize into any proposals due to numerous parties holding the Debt and the Inter-Company Debt.

Based off a draft letter of intent (“Letter of Intent“) sent by the Company to the Creditors on April 4, 2021, which captured the agreed upon figure of the settlement reached around December 15, 2020, the independent members of the Board supported the proposed terms of the Debt Settlement, and the parties formally entered into the Letter of Intent on May 5, 2021.

On July 9, 2021, based off the terms of the Letter of Intent, an initial draft of the Agreement was sent from the Company to the Creditors; the draft of the Agreement was largely based off the terms agreed to in the Letter of Intent. Nonetheless, one change in the terms between the Letter of Intent and the Agreement was the Company could settle the debt through a combination of consideration payable through a cash payment or assets-in-kind (rather than just a cash payment as stipulated in the Letter of Intent). This change was proposed by the Company to allow the Company to account for the type of consideration paid to it pursuant to the UAE Payment and to permit the Company to ensure suitable working capital flexibility to move forward upon completion of the Debt Settlement.

On September 2, 2021, the Agreement was reviewed and approved by the independent members of the Board. Mr. Al Fraih was excluded from Board discussions with respect to the approval of the Debt Settlement.

Advertisement

General Information About Payment Terms

With respect to the form of payment to be paid by the Company to the Creditors pursuant to the Debt Settlement Agreement (i.e., whether it will be a cash payment, assets-in-kind, or a combination of both thereof), the Company will make that decision based off its analysis of its working capital requirements for funding for the future growth of the business of the Company and will determine the apportionment based off both this framework and the type of consideration received from the UAE Payment. As of the date of this release, the Company has not determined the breakdown of the consideration that will be paid to the Creditors.

Any such assets to be paid in connection with the Debt Settlement may include real property located in the United Arab Emirates which may be received as part of the UAE Payment and will be subject to a valuation by an arm’s-length third-party appraisal firm agreed to by the respective parties in advance prior to being used as payment.

MI 61-101 Special Transaction

MTG is a wholly-owned subsidiary of GBS, which is a “control person” of the Company. Accordingly the Debt Settlement is a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Holders in Special Transactions (“MI 61-101“). Pursuant to MI 61-101, the Company will seek approval of the majority of minority shareholders (“Minority Shareholder Approval“) of the Company with respect to the Debt Settlement at the Meeting.

A copy of the form of Debt Settlement Agreement was attached to the Circular.

ABOUT MINT

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, United Arab Emirates. 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.

Forward-Looking Statements

Certain statements in this news release constitute “forward-looking” statements. These statements relate to future events or future performance and, in certain cases, can be identified by the use of words such as “estimated” “intends”, “plans”, “expects”, “anticipates”, or variations of such words and phrases as statements that certain actions, events or results “may”, “can”, will”, “might”, “shall”, “would” occur, or the negative forms of any of these words and other similar expressions. Forward-looking statements include the completion of the Debt Settlement pursuant to the terms of the Debt Settlement Agreement, the receipt of a cash payment in the amount of US$11,000,000, receipt of Minority Shareholder Approval pursuant to MI 61-101, and the use of the remaining funds for working capital purposes.

Advertisement

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: failure of the parties to fulfill the conditions of the Debt Settlement Agreement, business or economic risks which may cause additional financial difficulties for the parties of the Debt Settlement Agreement, the inability for the Company to receive the necessary shareholder, regulatory, or third-party approvals, and general market risks and fluctuations. Although the forward-looking statements contained in this news release are based upon what management of Mint believes are reasonable assumptions on the date of this news release, Mint cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties and other risks detailed from time-to-time in Mint’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com. These forward-looking statements are made as of the date of this news release and Mint disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.

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
Vishy Karamadam, Chief Executive Officer
416-729-1363
www.themintcorp.com

NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION TO U.S. NEWS WIRE

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/97628

Fintech

Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA)

Published

on

fintech-pulse:-your-daily-industry-brief-(chime,-zbd,-mica)

 

As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.

Chime’s Quiet Step Toward Public Markets

Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.

With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.

Source: Bloomberg

ZBD’s Pioneering Achievement: EU MiCA License Approval

ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.

MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.

Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.

Source: Coindesk, PR Newswire

Advertisement

The Fintech-Credit Union Synergy: A Blueprint for Innovation

The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.

This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.

Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.

Source: PYMNTS

Tackling Student Loan Debt: A Fintech’s Mission

Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.

The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.

As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.

Source: RBJ

Industry Implications and Takeaways

Today’s updates underscore several key themes shaping the fintech landscape:

  1. Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
  2. Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
  3. Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
  4. Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.

 

The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.

Advertisement
Continue Reading

Fintech

SPAYZ.io prepares for iFX EXPO Dubai 2025

Published

on

spayz.io-prepares-for-ifx-expo-dubai-2025

Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.

SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.

Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.

“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”

Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.

The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.

Continue Reading

Fintech

Airtm Enhances Its Board of Directors with Two Strategic Appointments

Published

on

airtm-enhances-its-board-of-directors-with-two-strategic-appointments

Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.

“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”

Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.

Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.

The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.

Continue Reading

Trending