CALGARY, ALBERTA--(Marketwire - Sept. 24, 2012) - Poynt Corporation (TSX VENTURE:PYN) ("Poynt Corp." or the "Company"), a global leader in mobile local search and advertising, today announced that the Court of Queen's Bench of Alberta (the "Court") granted an order extending its creditor protection until Thursday, September 27, 2012. The extension will allow the Company additional time to work towards closing additional debtor-in-possession ("DIP") financings.
As previously announced on September 18, 2012, the Company has now issued 1,200,000 common shares of the Company at a price of $0.05 per common share as settlement of an outstanding fee of CDN$60,000 payable to the Company's former first secured lender (the "Lender") as consideration for the Lender consenting to the security granted by the Court to the DIP financing the Company received on August 30, 2012 ranking in priority to the security granted to the Lender and for further consenting to such DIP financing and agreeing at that time not to realize on the Lender's security. As a result, the CDN$60,000 debt owing to the Lender has been extinguished. The common shares are subject to applicable hold periods or restricted periods and resale restrictions imposed under applicable securities laws, including, but not limited to, a hold period of four months and one day following the date of issuance of the common shares.
Hardie & Kelly Inc. of Calgary, Alberta, is the trustee appointed for the Company's Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act (Canada).
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 "PYN".
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 ability to obtain DIP financing; the ability to close DIP financing within the extension granted by the Court; Poynt Corp.'s ability to continue operations while under creditor protection; and the Company's focus on improving operational efficiencies and cost reductions. 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 completion 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 deteriorating economic and market conditions that could lead to reduced spending on information technology products; competition in the Company's target markets; 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; that Poynt Corp. will be able to complete a DIP financing under the timelines required by the Court; conditions in general economic and financial markets; 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.
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.
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