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Message: Major City of Toronto Contract Expected ... Could Be $15,000,000
There are Those in the "know" that are aware of a major City of Toronto contract that will add nearly $15 million in revenue for Selectcore. http://www.toronto.ca/legdocs/mmis/2011/bd/bgrd/backgroundfile-42776.pdf
Although this huge amount of additional revenue is derived from the contract award, there is much more revenue from the card users to consider. The "welfare" cards will be MasterCard based which means that interchange fees of 1-1.5% of all money spent goes back to the card issuer. With an estimated 40 k cards for phase 1 alone and an average load per month of $800, roughly $385 million a year will be loaded on these phase 1 cards alone, meaning Selectcore will make the 1-1.5% interchange fee on all these amounts as well. There are also interest revenues (from deposits on cards) that Selectcore will earn revenue on, in addition to user fees and misc charges to cardholders such as abm fees, bill payments, etc.
Once the welfare prepaid card is issued by the company it is expected that they will further eat away at payday company revenues by offering microcredit payday loans that can be loaded directly to the card without having the overhead expenses of having hundreds of payday stores across the country. These top ups can be done using selectcores patent pending technology that allows top ups via text messaging ( which users can transfer amongst themselves also using Facebook). It's no doubt that welfare cheque cashing is what brought business into these payday stores, with that service now eliminated for Toronto residents, they will surely look to Selectcore for the other services offered by these brick and morter businesses.
The City of Toronto deal is expected to be announced within days. Judging by today's increased volume it may be really soon. It's expected that with zero shorts on this stock, it could have a relived spike above the .70 cent mark it hit nearly a year ago once this news release is out. To date the company has only announced that it has secured a major significant government contract but no details as to whom it is with and what it is worth has been provided.....you're welcome!!!!
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