EFT Canada and Secure Payment Systems Terminate Proposed Acquisition
19 December 2008 - 5:47AM
Marketwired
EFT Canada Inc. (TSX VENTURE: EFT) wishes to inform shareholders
that it has decided to terminate work related to the prospective
acquisition announced on July 18, 2008, of Secure Payment Systems.
Jonathan Pasternak, president of EFT Canada, said that "in the
current economic environment, it is important for the proposed
combined entity of EFT Canada and Secure Payment Systems, to not be
encumbered by assuming debt at higher than normal levels due to the
credit shortage." Based on discussions between the two companies,
"it became apparent to EFT Canada and its board of directors that
the proposed acquisition would not be completed without assuming
significant debt, thereby reducing the overall return to
shareholders. Further, it also became apparent to the company and
its board that a re-negotiated, reduced purchase price was not a
viable option due to the increased growth of Secure Payment
Systems."
By terminating the acquisition Pasternak asserted, "EFT Canada
and Secure Payment Systems each will retain financial flexibility
and be in an advantageous position to pursue potential growth and
acquisition opportunities."
About EFT Canada
Founded in 2003, EFT Canada Inc. is a financial processing
company that offers a complete solution to the collection and
payment processing needs of small and medium sized business
merchants, banks, credit unions, and other financial firms in
Canada and the United States. The Company develops, maintains and
delivers innovative electronic transaction processing technologies,
such as customized electronic payment and collection processing
solutions and gift and loyalty card services, by drawing on its
operational and applications expertise.
About Secure Payment Systems, Inc.
Secure Payment Systems, Inc. (SPS)
(www.securepaymentsystems.com) was founded in 1996 by Linden (Lin)
Fellerman, former 20 year employee and 10 year President of the
Telecredit / Equifax Check Services subsidiaries. He attributes
this success, and Secure Payments Systems' growth rate, to
unprecedented customer service levels that begin and end with a
philosophy that empowers sales agents and employees while rewarding
and encouraging unusual attention to detail.
www.securepaymentsystems.com.
This press release contains forward-looking statements which
reflect the Company's current expectations regarding future events.
The forward-looking statements involve risks and uncertainties.
Actual results could differ significantly from those projected
herein.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for adequacy or accuracy of the content of the
information contained herein.
Contacts: EFT Canada Inc. Jonathan Pasternak (416) 781-0666
Website: www.eftcanada.com
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