Poynt Corporation

Poynt Corporation

July 31, 2012 08:00 ET

Poynt Corporation Provides Operational Update

Secures agreement for debtor-in-possession financing and receives extension to creditor protection

CALGARY, ALBERTA--(Marketwire - July 31, 2012) - Poynt Corporation (TSX VENTURE:PYN) ("Poynt Corp." or the "Company"), a global leader in mobile local search and advertising, today announced an operational update that highlights continued operations with a growing user base, the launch of the Poynt Beta for Android in North America and opportunities for strategic alternatives as the Company improves operational efficiencies and reduces costs.

The Company announced today that the Court of Queen's Bench of Alberta (the "Court") granted an order extending its creditor protection until August 12, 2012 and that an agreement has been made and approved by the Court for debtor-in-possession ("DIP") financing for three hundred thousand Canadian dollars ($300,000.00 CDN) at an interest rate of 14%. The extension provides additional time to enable the Company to evaluate several opportunities for strategic alternatives as part of its plan to address all creditor obligations and to maximize shareholder value.

The DIP financing is repayable on demand by the lender following an event of default. In any event, it will be repaid in full at the earliest of: (i) twelve months from July 30, 2012; (ii) the date on which Poynt Corp. completes all requirements of the Company's Notice of Intention to Make a Proposal (the "Proposal Proceedings") under the Bankruptcy and Insolvency Act (Canada)("BIA") that has been accepted by its creditors and approved by an order of the Court; and (iii) the fifth business day following the date on which the stay of proceedings ordered in the Proposal Proceedings is terminated or lifted.

Hardie & Kelly Inc. of Calgary, Alberta, the trustee appointed for the Proposal Proceedings, has filed the Company's cash flow statement with the Office of the Superintendent of Bankruptcy and has delivered the requisite initial filing documents to the Company's creditors, all in accordance with the provisions of the BIA.

"The interim financing affords us the opportunity to continue operations while we finalize our long-term business plan moving forward. The Company is poised to take advantage of the incredible growth seen in mobile search and advertising over the past year," said Andrew Osis, CEO, Poynt Corp. "We are currently investigating a number of strategic alternatives which would allow the Company to exit creditor protection to the benefit our shareholders, creditors and employees alike."

Since initially seeking creditor protection, Poynt Corp. has remained committed to growing the business and maintaining operations. The Company has continued to work towards the introduction of new products to ensure the Poynt Platform ("Poynt" or the "Poynt Platform") remains relevant for its over 17 million unique users.

On July 18th, 2012 Poynt Corp. launched the Poynt Beta for Android in North America. Built for Ice Cream Sandwich (Android 4.0), the Beta introduces a bold new look for the Poynt Platform along with several technical enhancements - improved battery life and network bandwidth use, a tiled dashboard design and drawer-style navigation.

In an effort to improve operational efficiencies and reduce costs, effective immediately Cassy Weber, SVP Monetization, Matt Kojalo, VP Global Advertising Sales and Damon Miller, VP Platform Products, are no longer with the Company. These management changes along with other operational and cost reductions are part of the Company's continuing efforts to achieve cash flow positive operations in due course.

About the Poynt Platform

Poynt is a convenient and timesaving GPS-enabled mobile local search and advertising platform that connects consumers to local offers, businesses, events, restaurants, movie theatres, gas prices and weather information at the moment they are looking to buy or acquire products or services. Poynt provides consumers with the ability to move beyond discovery of their local area to view movie trailers and reviews, buy movie tickets, click-to-call businesses, get directions, browse listing websites, read reviews and book dining reservations or find and interact with local coupons and offers.

Poynt provides contextual and relevant advertising to users performing local queries and its revenue model is based on user queries, page views, advertising and transactions within the platform. Each user query generates several page views, which are monetized through display advertising and sponsored listings paid for by advertisers. These advertising placements generate revenues on a cost per thousand impressions (CPM) basis or on a cost per click (CPC) basis. Transactions, such as ticket sales and restaurant reservations, also contribute to revenues on a fee for service basis.

About Poynt Corporation

Poynt Corp. (about.poynt.com) (TSX VENTURE:PYN) is a global leader in the mobile local advertising space. Its Location Based Search (LBS) and advertising platform, Poynt (www.poynt.com), enhances a user's ability to connect with the people, businesses and events most important to them. Poynt is available on Android, iPhone, Windows Phone and Nokia devices, along with BlackBerry smartphones and BlackBerry PlayBook Tablets in Canada, the United States, Europe, India and Australia. Poynt Corp. entered the mobile publishing space with the acquisition of an advertising publishing platform in January 2011. Whether through the Poynt Local Search Platform or the Ad Publishing Platform, Poynt Corp. simplifies connecting consumers with businesses, retailers and events. Headquartered in Calgary, AB, Canada, Poynt Corp. trades on the TSX Venture Exchange under the symbol.

Reader Advisory: The press release may contain certain forward looking statements which may include plans, expectations, forecasts, projections, guidance or other statements that are not statements of fact, including, without limitation, meeting the terms, conditions and approval requirements under its creditor protection; the effect of the DIP financing on Poynt Corp.'s ability to continue operations while under creditor protection; the terms of the DIP financing; the Company's strategic plans; the Company's review of strategic opportunities and the expected benefits to be obtained therefrom; the Company's ability to obtain cash flow positive operations; and the benefits to be obtained by users of Poynt Beta for Android. Although Poynt Corp. believes that the expectations reflected in such forward looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. The effect of the DIP financing is subject to a number of conditions and Poynt Corp. cannot give any assurance that such conditions will be met on a timely basis, or at all, as certain of the conditions are in the control of other parties. As such, the future plans and objectives of Poynt Corp. are forward looking statements that involve risks and uncertainties that may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in such statements.

Material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to: risk that the Company will be unable to meet the terms of the DIP financing; risk that the Company will be unable to meet the terms, conditions and approval requirements under its creditor protection; inability of Poynt Corp. to fund its obligations; the inability of Poynt Corp. to obtain cash flow positive operations; the deteriorating economic and market conditions that could lead to reduced spending on information technology products; competition in the Company's target markets; failure to realize the anticipated benefits from Poynt Beta for Android; potential capital needs; management of future growth and expansion; the development, implementation and execution of the Company's strategic visions; risk of third-party claims of infringement; protection of proprietary information; customer acceptance of the Company's existing and newly introduced products; the success of brand development efforts; risks associated with strategic alliances; failure of counterparties to perform on contracts; failure to successfully negotiate contracts; failure to successfully negotiate a strategic opportunity; need to develop new and enhanced products; potential product defects; ability to hire and retain qualified employees and key management personnel; risks associated with changes in domestic and international market conditions and the entry into and development of new markets for the Company's products; and the risks described under "risk factors" in the Company's Annual Information Form for the year ended December 31, 2010 which is available on Poynt Corp.'s SEDAR profile (www.sedar.com).

Although Poynt Corp. has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. In making the forward looking statements in this press release, Poynt Corp. made, among others, the following assumptions: that Poynt Corp. will be able to formulate a suitable creditor proposal in the timelines required under its creditor protection filing; conditions in general economic and financial markets; the ability to complete a strategic transaction; the ability to obtain all necessary regulatory approvals; and the ability to obtain financing on acceptable terms, including Poynt Corp.'s ability to finance its future commitments.

Poynt Corp.'s forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, Poynt Corp. does not intend, nor does it undertake any obligation, to update or review any forward looking statements to reflect subsequent information, events, results or circumstances or otherwise.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. Apple App Store and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. Windows is a registered trademark of Microsoft Corporation in the United States and other countries. Android is a registered trademark of Google Inc. Nokia is a registered trademark of Nokia Corporation.

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

  • For Poynt Corp.:
    Andrew Osis

    North American Public Relations Contact:
    Global Results PR for Poynt Corporation
    Valerie Christopherson / Lora Friedrichsen