SelectCore Signs Deal to Sell Prepaid Telecom Assets for $6.67 Million

TORONTO, ONTARIO--(Marketwired - July 16, 2014) - SelectCore Ltd. ("SelectCore" or the "Company") (TSX VENTURE:SCG), Canada's Leading Payments Organization, is pleased to announce that it has signed a binding term sheet with Investel Capital Corp. to sell its legacy prepaid telecommunication assets. The total value of the transaction is approximately $6,669,064 including a combination of assumption of debt ($4,308,071), and cash, inventory and accounts receivables ($2,360,993).

The assets being sold represent the Company's prepaid telecom switching, long distance and Canadian and US mobile airtime distribution businesses.

Under the terms of the binding term sheet, 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.

The structure of the asset sale ensures that SelectCore will retain all carry-forward tax losses in excess of $15M which will result in greater future earnings per share.

SelectCore's Management and Board of Directors believe that the divesture of these non-core telecom assets is in the best interest of the Company. In addition to realizing a significant improvement to the Company's balance sheet, SelectCore can now focus solely on growing its high-margin financial services business.

"The strategic merit of this transaction is to allow SelectCore to concentrate on its core financial services business while restoring shareholder value," commented Keith McKenzie, President of SelectCore. "The significant improvement to our financial position will allow us to execute on new opportunities and harness the Company's full potential."

Shareholders are being asked to vote in favour of this transaction via proxy prior to the Company's Annual General Meeting and Special Meeting to be held on August 8^th, 2014. The transaction is also subject to regulatory approval. The sale is expected to close on or before August 15^th, 2014.

About SelectCore:

SelectCore Ltd. (TSX VENTURE:SCG) is a pioneer and leader in alternative prepaid payment solutions for underserved markets. Founded in 1999, the Company offers a range of prepaid products and services that provide financial empowerment to a market of millions of under-banked consumers. SelectCore has been recognized as one of Canada's Fastest-Growing Companies by Profit100, North America's Fastest-Growing Technology companies by Deloitte Fast500, Canada's Top Tech Companies by Branham300 and Canada's Leading Payments Organization by Payments Exchange.