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GameCorp Settles Debt with OCCGI Shareholders(July 17, 2012)
TORONTO, ONTARIO -- (Marketwire) -- 07/17/12 -- GameCorp Ltd. ("the Company") (CNSX:GGG)(PINKSHEETS:GAIMF) is pleased to announce that it has entered into a debt settlement agreement ("Settlement") with the former shareholders of OC Communications Group Inc. ("OCCGI"), the Company's recently acquired Business Process Outsourcing subsidiary. Under the terms of the acquisition, the Company assumed a vendor-take-back loan ("VTB") of $1.65 million plus accrued interest owing to the former shareholders of OCCGI and secured against the shares of OCCGI. The Settlement reduces the VTB amount to zero, and by issuing the former Shareholders 18.5 million common shares of the Company at a value of C$925,000 and providing the former Shareholders an Earn-out equal to 20% of OCCGI EBITDA capped at a cumulative amount of C$400,000. The former Shareholders are providing a full release as part of the Settlement Agreement.
"We believe this was a very prudent decision as it significantly reduces the amount of debt the Company had assumed through the acquisition of OCCGI and also aligns the management of OCCGI with our current shareholders. We are excited for the potential of OCCGI and the BPO sales pipeline looks to be very strong through fiscal 2013," stated Mr. J. Graham Simmonds, President and CEO.
GameCorp Ltd. is a public company that trades under the symbol GGG on the Canadian National Stock Exchange and under the symbol GAIMF on the Pink Sheets of the Over the Counter Bulletin Board. In general, the Company is a merchant banking company that is opportunistic with its investment scope. The company has recently focused its investments towards the thriving North American Business Process Outsourcing (BPO) market as well as the consumer financing market by leveraging its recently acquired BPO division The Company continues to look for acquisition opportunities in these key markets in order to continue to drive competitive advantages and growth.
ON BEHALF OF GAMECORP LTD.
For additional information please visit the Company's website at www.gamecorp.com or refer to www.sedar.com.
This press release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. These statements involve risks and uncertainties including, without limitation, GameCorp's ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.
The Canadian National Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
Mr. Graham Simmonds
Chairman, President and Chief Executive Officer
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