EFT Canada Completes Acquisition of Credit Card Gateway
02 September 2011 - 11:00PM
Marketwired
EFT Canada Inc (TSX VENTURE: EFT), a publicly traded company based
in Toronto Ontario, today announced that it has completed the
acquisition of the technology assets, namely the credit card
gateway, of privately held, Toronto, Ontario-based Linterna
Technologies Ltd. ("LTL"). The acquisition first announced on July
12, 2011, subject to certain customary conditions, has received
approval by the TSX Venture Exchange and EFT Canada's Board of
Directors.
The acquired proprietary java based software provides its users
a web-based point of sale interface that merchants can utilize to
process credit card transactions, in addition to having the ability
to operate mobile e-wallet options. The software will be integrated
with EFT Canada's existing transaction processing platform,
allowing customers to take advantage of the broader set of
capabilities without the need to replace existing technology. EFT
Canada believes the acquisition will allow it to significantly
increase gross revenues and will initially market the product to
its existing customer base.
EFT Canada paid LTL for its technological assets, namely the
credit card processing gateway, a total of $650,000 by way of
$325,000 in cash, of which $125,000 was paid on the closing date,
and $325,000 payable in common shares of EFT Canada at a price of
$0.30, or 1,083,000 total shares. The remaining cash payment of
$200,000 is due on the beginning of the thirteenth month following
the closing date, and is subject to delay and reduction if
operating targets are not met. EFT Canada completed the acquisition
using existing capital resources.
Common shares of EFT Canada issued to LTL were immediately
placed in escrow and will be released in three equal installments
following months 6, 12 and 18 of the closing date.
In addition to the purchase price, LTL will be paid by EFT
Canada $0.05 per credit card transaction processed for a period of
three years following the closing date. Such payments shall not
exceed a combined amount of $330,000 and are also subject to
reduction if operating targets are not met.
Also on the closing date, James Watt, a principal of LTL,
entered into a two year consulting agreement with EFT Canada.
Further, EFT has completed the previously announced hiring of
additional IT personnel to support the new credit card gateway
platform.
Jonathan Pasternak, President of EFT Canada, commented: "EFT
Canada looks forward to taking our strengthened capabilities to the
marketplace and further delivering transaction processing software
to our customers. We will continue to look for acquisitions, which
broaden our product line and is synergistic with existing client
needs."
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.
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. 416-781-0666 www.eftcanada.com
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