Poynt Corporation

Poynt Corporation

November 24, 2010 08:45 ET

Poynt Corporation Announces Termination of Convertible Debt Financing and Commencement of $3,000,000 Common Share Financing

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2010) -


Poynt Corporation (formerly, Multiplied Media Corporation) (the "Company" or "Poynt") (TSX VENTURE:PYN), a leading provider of mobile local search services, announces that it has terminated its previously announced offering, through Canaccord Genuity Corp. ("Canaccord Genuity"), of unsecured subordinated convertible debentures and has entered into an agreement with Canaccord Genuity respecting a private placement of up to 40,000,000 common shares (the "Common Shares") of the Company at a price of $0.075 per Common Share. The new equity private placement agreement contemplates the offering by Canaccord Genuity, as sole agent, on a "commercially reasonable efforts," private placement basis, of up to 40,000,000 Common Shares for gross proceeds of up to $3,000,000 (the "Offering"). The Company has also granted Canaccord Genuity an option to sell, on a private placement basis, up to an additional 13,333,333 Common Shares at a price of $0.075 per Common Share for additional gross proceeds of up to $1,000,000, which option is exercisable at any time prior to closing of the Offering.

The Common Shares sold in the Offering will be subject to a hold period under applicable securities laws, which hold period expires 4 months and a day from date of closing of the Offering.

A cash fee shall be payable to Canaccord Genuity under the Offering of seven percent (7%) of the gross proceeds of the Offering. In addition, a corporate finance fee of 1,000,000 Common Shares are to be issued to Canaccord Genuity upon closing of the Offering. Canaccord Genuity will also receive broker warrants of the Company entitling Canaccord Genuity to subscribe for that number of Common Shares equal to 10% of the aggregate number of Common Shares sold pursuant to the Offering. Each broker warrant shall be exercisable, for a period of 24 months from the date of closing of the Offering, into one Common Share at a price of $0.075 per share.

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 Offering is expected to close on or about November 30, 2010 and is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange, and satisfaction of all other customary closing conditions.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities law and may not be offered or sold in the United States absent registration or applicable exemption from those registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Poynt Corporation

Poynt Corporation (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, Poynt Corporation trades on the TSX Venture Exchange under the symbol PYN.

Forward Looking Statement
This news release contains forward-looking statements relating to the proposed financing and other statements that are not historical facts, including statements regarding the anticipated maximum proceeds of the Offering, pricing of the Offering, the use of proceeds of the Offering, projected timing of closing the Offering and the receipt of all necessary regulatory approvals and satisfaction of all other customary closing conditions in connection with 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, the ability of the agents to successfully market the proposed Offering, the timing of obtaining and receipt of all necessary regulatory approvals and satisfying closing conditions. 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 closing of the Offering could be delayed if the Company is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned; the risk that the Offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied; 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
    Raymond Ng
    Director, Investor Relations