TORONTO, Sept. 25, 2012 /CNW/ - SelectCore Ltd. ("SelectCore" or the "Company") (TSX-V: SCG) a leading prepaid payment solutions provider for underserved markets, is pleased to provide a corporate update in relation to its recently closed financing.
This capital injection not only strengthens the Company's balance sheet, but also provides the necessary working and growth capital to execute on a large number of programs and opportunities in the pipeline as well as fund the roll-out of SelectCore's new financial product and service offerings including Iridium MasterCard and ReCash reload network.
In addition to completing this financing, the Company is implementing cost saving measures within its legacy business to allow the Company to better utilize resources and focus on its high-margin prepaid payments solutions business.
The successful launch of the City of Toronto City Services Benefit Card program has positioned SelectCore as the incumbent in the Canadian marketplace having launched the first government disbursement card program of its kind. SelectCore has the capabilities, expertise, technology and infrastructure to deliver turn-key programs to other government agencies looking to modernize service delivery to recipients and benefit from significant cost savings over issuing paper checks.
The shift to a cashless society is starting to drive significant interest for prepaid cards within the public and private sector. SelectCore is now focusing efforts on submitting multiple bids for government and corporate RFPs for the procurement of prepaid card programs and is hopeful to be awarded certain contracts in the near term.
The Company is also expanding it's payment solutions business to key markets in the Caribbean and Central America where there is a large population of underbanked consumers and very low market penetration of prepaid cards.
"We believe this financing is key in taking the Company to the next level and being able to execute on our growth strategy that will ultimately drive profitability and long-term shareholder value." commented Keith McKenzie, CEO of SelectCore.
Established in 1999, SelectCore is a leading prepaid financial services provider and transaction processor for under-banked and underserved markets. From prepaid mobile top-up to stored-value cards and remittance solutions, SelectCore services a market of millions of under-banked consumers through its technology platforms and extensive retail distribution network. SelectCore is a publicly traded company listed on the TSX Venture Exchange under the symbol "SCG" (TSXV: SCG). SelectCore was ranked by Profit100 as one of Canada's fastest-growing companies in 2006, 2007, 2009 and 2010. SelectCore was also ranked one of North America's fastest growing companies on Deloitte's 2011 Technology Fast 500.
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.
Certain information in this news release contains forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond SelectCore's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of exchange rates, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect SelectCore's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and SelectCore does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
SOURCE: Selectcore Ltd.
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