Trustee in Poynt Corporation Creditor Protection Process

Trustee in Poynt Corporation Creditor Protection Process Files
Material Adverse Change Report Due to $1 Million Loan Proceeds Not
Yet Advanced 
CALGARY, ALBERTA -- (Marketwire) -- 10/26/12 -- Poynt Corporation
(TSX VENTURE:PYN) ("Poynt Corp." or the "Company"), a global leader
in mobile local search and advertising, today announced that Hardie &
Kelly Inc. of Calgary, Alberta, (the "Trustee") the trustee appointed
for the Company's Notice of Intention to Make a Proposal (the
"Proposal Proceedings") under the Bankruptcy and Insolvency Act
(Canada)("BIA"), has today filed a Material Adverse Change Report
(the "Report") with the Office of the Superintendent of Bankruptcy
(Canada). 
The Report refers to the agreement entered into by the Company with a
third party lender (the "Lender") dated October 16, 2012 for
debtor-in-possession ("DIP") financing in an aggregate amount of one
million Canadian dollars (CDN$1,000,000) (the "October 16th Loan").
The Report outlines that the DIP financing under the October 16th
Loan has not yet been advanced to the Company by the Lender, that the
Company is therefor unable to meet its outstanding post BIA-filing
obligations and as such the Trustee considers there to be material
adverse change in the cash flow and financial circumstances of the
Company. The Report also states that the Trustee intends on making an
application (the "Court Application") to the Court of Queen's Bench
of Alberta (the "Court") to terminate the Stay of Proceedings (the
"Stay") originally implemented by the Court under the BIA, due to the
Trustee being of the opinion that the Company's creditors as a whole
would be materially prejudiced should the Stay remain in place given
the lack of funding under the October 16th Loan. The Trustee expects
to make the Court Application on Wednesday October 31, 2012 at 3:00
pm (Calgary time). The Report adds that should the Stay be
terminated, the Company will be deemed to have made an assignment
into bankruptcy. The deemed bankruptcy of the Company would result in
the Company immediately ceasing operations and undergoing a
liquidation process in accordance with the terms of the BIA. 
Despite the filing of the Report, Poynt Corp. will be working with
the Lender to rectify the non-funding of the October 16th Loan to
ensure that the full $1 million principal amount of this loan is
funded to the Company on or prior to the date of the Court
Application. Poynt Corp. will be also be working with its secured
lender and its other DIP lenders during this period to ensure such
parties are in support of its actions. 
Provided the Company is successful in the foregoing efforts, it
expects that the Trustee will withdraw the Court Application and the
Stay will be continued to at least November 26, 2012, with
approximately $480,000 of the loan proceeds then being used by the
Company to meet outstanding post BIA-filing obligations, with the
balance of the loan proceeds being used to fund operations to at
least November 26, 2012.  
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: This 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 DIP financings on Poynt Corp.'s ability to continue operations
while under creditor protection; the Trustee's intention to make the
Court Application to terminate the Stay and the anticipated timing
thereof; the effect of the Stay being terminated on the Company; the
effect of the deemed bankruptcy and liquidation of the Company; the
Company's plans to work with the Lender to rectify the non-funding of
the October 16th Loan and to work with its secured lender and its
other DIP lenders to ensure such parties are in support of its
actions; the anticipated effect of such efforts by the Company on the
Trustee, the Court Application and the Stay; the application of the
loan proceeds; and the ability of the Company to continue operations
and to continue to work on the Proposal Proceedings and its long-term
business plan. 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 October 16th Loan 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,
conditions and approval requirements under its creditor protection;
risk that the Trustee proceeds with the Court Application and the
Stay is terminated; the risk that the Stay is terminated and the
Company is deemed to have made an assignment into bankruptcy, ceases
operations and proceeds with a liquidation of its assets; risk that
the Company is unable to rectify the non-funding of the October 16th
Loan; risk that the Company's secured lender and its other DIP
lenders are not in support of the Company's actions; 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 the Company will be able to
work with the Lender to rectify the non-funding of the October 16th
Loan; that the Company will be able to work with its secured lender
and its other DIP lenders to ensure such parties are in support of
its actions described herein; and that if the Company is successful
in its efforts described herein, the Trustee will withdraw the Court
Application and the Stay will be continued to at least November 26,
2012. 
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 Corp.
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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