SelectCore, Toronto-based prepaid payment solution firm , last week has announced that it has signed a binding term sheet with Investel Capital Corp. to sell its legacy prepaid telecommunication assets for approximately $6.7 million, in combination of the assumption of debt and cash. The assets include the Company’s prepaid telecom switching, long distance and Canadian and US mobile airtime distribution businesses.
According to a news release, SelectCore will have continued access to the retail distribution channels and a royalty-free, perpetual license of its prepaid telecom technology platforms – both of which will continue to augment the Company’s financial services business under the terms of the binding term sheet.
“The strategic merit of this transaction is to allow SelectCore to concentrate on its core financial services business while restoring shareholder value. The significant improvement to our financial position will allow us to execute on new opportunities and harness the Company’s full potential.”
– Keith McKenzie, President, SelectCore