Poynt Corporation Secures Agreement for Debtor-In-Possession

Poynt Corporation Secures Agreement for Debtor-In-Possession
Financing and Receives New Extension to Creditor Protection 
CALGARY, ALBERTA -- (Marketwire) -- 10/16/12 -- 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 Monday, November 26, 2012,
and that an agreement was made and approved by the Court for a
debtor-in-possession ("DIP") financing in an aggregate amount of one
million Canadian dollars (CDN$1,000,000.00) at an interest rate of
20% (collectively, the "DIP Financing").  
The DIP Financing was provided by one lender (the "DIP Lender"), is
secured against all of the Company's assets and is repayable on
demand by the DIP Lender following an event of default. In any event,
the DIP Financing will be repaid in full at the earliest of: (i)
twelve months from October 15, 2012; (ii) the date on which Poynt
Corp. successfully 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"); or (iii) the fifth
business day following the date on which the stay of proceedings
ordered in the Proposal Proceedings is terminated or lifted. The DIP
Financing is a committed revolving loan which may be drawn on a daily
basis in individual advance amounts and subject to twenty four (24)
hour advance notice to the DIP Lender.  
Subject to receipt of all required regulatory approvals, including
the approval of the TSX Venture Exchange, the Company has agreed to
issue an aggregate of 4,000,000 common shares to the DIP Lender as
consideration for taking the risk of providing of the DIP Financing.
The common shares will be 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.  
"With this latest round of DIP Financing, the Company expects to
announce a plan to address the Proposal Proceedings with our
creditors in the near term," said Andrew Osis, CEO, Poynt Corp.
"Under creditor protection, the Company has delivered a new and
improved version of the Poynt platform to our users, has strengthened
global partnerships and grew its unique user base to nearly nineteen
million users. In addition, the Company has significantly improved
operational efficiencies and reduced costs. The Company is now in a
strong position moving forward that will allow us to maximize
shareholder value over the long-term."  
Hardie & Kelly Inc. of Calgary, Alberta, is the trustee appointed for
the Company's Proposal Proceedings under the BIA.  
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 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 ability to obtain additional
DIP financings; expected timing of announcement of a plan to address
the Proposal Proceedings with the Company's creditors; ability to
maximize shareholder value over the long-term; and the Company's
long-term business plan and the expected benefits to be obtained
therefrom. 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 and further DIP financings
are 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 obtain
additional DIP financing; risk that the Company will be unable to
meet the terms, conditions and approval requirements under its
creditor protection; risk that the Company's creditors will not
approve a plan to address the Proposal Proceedings; 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; failure to
obtain all required regulatory approvals, including the approval of
the TSX Venture Exchange of the common shares to be issued to the DIP
Lender; 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 further DIP financings under the timelines required by
the Court; that the Company will be able to hire and retain qualified
employees; conditions in general economic and financial markets;
ability to complete a strategic transaction; receipt of 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. 
Contacts:
Poynt Corporation
Andrew Osis
CEO
403-313-3719
www.poynt.com 
North American Public Relations Contact:
Global Results PR for Poynt Corporation
Valerie Christopherson / Asif Husain
949-608-0276
poynt@globalresultspr.com
 
 
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