Poynt Corporation

Poynt Corporation

December 13, 2010 18:33 ET

Poynt Corporation Announces Close of Bought Deal Private Placement for Total Proceeds of $3.75 Million

CALGARY, ALBERTA--(Marketwire - Dec. 13, 2010) -


Poynt Corporation (the "Company") (TSX VENTURE:PYN), a leading provider of mobile local search services, today announced the closing of the previously announced private placement financing with Cannacord Genuity Corp. (the "Underwriter"). Pursuant to the financing, the Company issued 75,000,000 units of the Company ("Units") priced at $0.05 per Unit, for total gross proceeds of $3,750,000 (the "Offering"), which includes 25,000,000 Units issued on exercise in full of the option granted to the Underwriter.

Each Unit is comprised of one common share of the Company and one common share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one common share of the Company at a price of $0.10 per common share on or before 5:00 p.m. (Calgary time) on the date that is 36 months from the date of closing of the Offering (the "Closing Date").

The cash fee paid to the Underwriter was seven percent (7%) of the gross proceeds of the Offering. In addition, a corporate finance fee of 1,000,000 common shares were issued to the Underwriter. The Underwriter also received broker warrants of the Company entitling the Underwriter to subscribe for up to 7,500,000 Units. Each broker warrant shall be exercisable, for a period of 24 months from the Closing Date, at a price of $0.05, into one common share of the Company and one Warrant, with each Warrant being exercisable into one common share of the Company at a price of $0.10 per common share on or before 5:00 p.m. (Calgary time) on the date that is 36 months from the Closing Date.

The Company intends to use the net proceeds of the Offering for development and deployment of the Company's Poynt application on additional smartphone platforms, promotion and marketing of the Company's products to increase awareness and grow the user base, releasing the Company's products into new geographic areas and for general working capital purposes.

The securities issued under the Offering will be subject to a four-month hold period from the Closing Date.

About Poynt Corporation

The Company (about.poynt.com) develops and operates mobile applications that enhance the consumers' ability to connect with the people and businesses most important to them. Their multi-award-winning Poynt application (www.poynt.com) is a mobile local search service available over BlackBerry smartphones, iPhone and iPod Touch as well as Android devices. Through agreements with directory and vertical content providers in Canada, the United States, Europe and Australia, Poynt simplifies finding and connecting with businesses, retailers and events wherever and whenever it is most convenient for the consumer. The MyInboxNow offering enables low-end feature phones to behave like smartphones for email access. MyInboxNow is available to mobile operators as a private label solution. Headquartered in Calgary, AB, Canada, the Company trades on the TSX Venture Exchange under the symbol PYN.

Forward Looking Statement

This news release contains forward-looking statements relating to the private placement financing and other statements that are not historical facts, including the use of proceeds of the Offering. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The results or events predicated in these forward-looking statements may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on these forward-looking statements.

These forward-looking statements are based on certain key assumptions regarding, among other things: state of the economy in general and capital markets in particular, investor interest in the Company's business and future prospects, and receipt of all necessary regulatory approvals. Material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to: the risk that the intended use of the net proceeds of the Offering by the Company might change if the board of directors of the Company determines that it would be in the best interests of the Company to deploy the proceeds for some other purpose; risks that the marketing efforts will not result in the anticipated proceeds; the deteriorating economic and market conditions that could lead to reduced spending on information technology products; competition in our target markets; potential capital needs; management of future growth and expansion; the development, implementation and execution of the Company's strategic vision; risk of third-party claims of infringement; protection of proprietary information; customer acceptance of the Company's existing and newly introduced products and fee structures; and the success of the Company's brand development efforts; risks associated with strategic alliances; reliance on distribution channels; product concentration; need to develop new and enhanced products; potential product defects; our ability to hire and retain qualified employees and key management personnel; and risks associated with changes in domestic and international market conditions and the entry into and development of new for the Company's products.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on expectations of, or statements made by, third parties in respect of the proposed private placement financing.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Poynt Corporation
    Andrew Osis
    Chief Executive Officer