Poynt Corporation (TSX VENTURE:PYN)(OTCQX:PNYTF) ("Poynt Corp." or
the "Company"), announced today that the Company has finalized the
structuring of its first Asian operating entity, Poynt Asia (Hong
Kong) Limited ("Poynt HK") and the formation of a joint venture
(the "China JV" or "China Youth Poynt Limited") between Poynt HK
and China Youth League's affiliated entity, China Youth Goyor
Technology (Beijing) Co., Ltd. ("China Youth Goyor"). China Youth
League ("CYL") is a youth movement of the People's Republic of
China that plays a vital role in the development of China. CYL has
over 83 million young members between the ages of 14 and 28, the
majority of which are typically well-educated and influential.
As an initial objective of the China JV, China Youth Goyor will
focus on obtaining the Chinese Ministry licenses required for
conducting the business of China Youth Poynt Limited, securing data
service agreements and preload agreements in China with major
telecom companies, and facilitating consumer usage of the Poynt
mobile platform in China (the "China Youth Poynt Platform"),
initially among CYL's over 83 million members. As an initial
performance benchmark of the China JV, China Youth Goyor is to
deliver at least 20 million active users in or around August 2012.
Based on preliminary discussions, China Youth Poynt Limited
anticipates as many as 60% of CYL's membership may become active
users (approximately 50 million active users) of the China Youth
Poynt Platform. Additionally, the China Youth Poynt Platform will
be marketed by the China JV to the broader smartphone population in
China. This rapidly growing market is expected to surpass 230
million(i) users in 2012.
"The Company is extremely pleased to have China Youth Goyor as
its joint venture partner for the development and expansion of the
Poynt mobile platform in China. The Asian market presents a vast
opportunity for expansion of the Poynt mobile platform," said
Andrew Osis, CEO of Poynt Corp. "The Chinese mobile market alone
has been estimated at nearly 1 billion users(ii) - that represents
an enormous opportunity for Poynt Corp. as mobile users in China
convert to smartphones and discover the power of apps, and mobile
local search platforms in particular."
Through the China JV, Poynt HK and China Youth Goyor will deploy
the China Youth Poynt Platform initially in China. The China Youth
Poynt Platform will be based on the current Poynt local search
platform; however, additional functionality, such as local news,
video messaging, gaming, e-books, and online novels, social
networking services, and e-wallet solutions are being considered
for inclusion in the China Youth Poynt Platform.
China Youth Poynt Limited plans to enter into a number of China
Youth Poynt Platform-related agreements in China with data
partners, telecom providers and original device manufacturers to
allow the China Youth Poynt Platform to reach into China's
smartphone user population as a preloaded, subscription-based
model.
Poynt HK has appointed David Wei Ren as CEO of China Youth Poynt
Limited. Responsible for operations in China, Mr. Ren brings over
12 years of experience with multinational companies to the Poynt
team. With a career focused in the IT industry including mobile
software and app store business management, Mr. Ren has an in-depth
understanding of the business model and trends in the mobile space
and the role that mobile software applications play with device
manufacturers.
In structuring the China JV, Poynt Corp. subscribed for a 60%
equity interest in Poynt Asia, Ltd. ("Poynt Asia"), a Bermuda
company, for nominal consideration. The balance of the equity of
Poynt Asia is owned, as to 20%, by a company affiliated with
Poynt's largest shareholder (owning or controlling approximately
16% of the outstanding Poynt common shares) and as to 20%, by an
arm's length party. By way of an intercompany loan of $7M from
Poynt Corp. to Poynt Asia (the "Poynt Asia Loan"), $2M was used by
Poynt Asia to acquire a 100% equity interest in Poynt HK from an
arm's-length party. The remaining $5M of the Poynt Asia Loan was in
turn loaned by Poynt Asia to Poynt HK to fund the commencement of
operations of the China JV.
Poynt HK will have a 70% economic interest and a 49% equity
interest in China Youth Poynt Limited. The China JV structuring
arrangements also contemplate: (i) Poynt Corp. providing access to
its Poynt app technology to the China JV for use in Asia; (ii)
additional contingent cash consideration being paid to the vendor
of Poynt HK by Poynt Asia in the event certain pre-defined
operational and financial targets are achieved in respect of Poynt
HK's go forward business; (iii) the deferral of the repayment of
the Poynt Asia Loan pending the return of capital to the non-arm's
length minority shareholder of Poynt Asia; and (iv) the arm's
length minority shareholder of Poynt Asia having a residual right
to receive 1/7th of the dividends received by Poynt Asia from Poynt
HK.
Payment of the above described additional contingent cash
consideration and deferred repayment of the Poynt Asia Loan to
Poynt are subject to the completion of all required due diligence
and satisfaction of other customary conditions. The Company expects
to complete this due diligence in the near term.
Investor Conference Call
Poynt Corp. will discuss details of the China JV in an investor
conference call this afternoon (February 13, 2012) at 4:30 p.m.
Eastern Time (3:30 p.m. Mountain Time). The Company's CEO, Andrew
Osis, will host the presentation followed by a question and answer
period.
Date: Monday, February 13, 2012
Time: 4:30 p.m. Eastern time (3:30 p.m. Mountain time)
Dial-In Number: 1-877-941-8416
International: 1-480-629-9808
Conference ID#: 4512702
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Liolios Group at
1-949-574-3860.
To listen to the live webcast please go to
http://viavid.net/dce.aspx?sid=0000937C. A replay of the webcast
will be available following the conclusion of the call via Poynt's
website at http://about.poynt.com.
A telephone replay of the call will be available after 7:30 p.m.
Eastern time (6:30 p.m. Mountain time) and until March 13,
2012.
Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay pin #: 4512702
(i)
http://www.china.org.cn/business/2012-01/06/content_24339315.htm
(ii)
http://www.stats.gov.cn/english/statisticaldata/monthlydata/t20120110_402778254.htm
About China Youth Goyor Technology (Beijing) Co., Ltd
China Youth Goyor is the partner with Network Film & TV
Center of the Central Committee ("CNTC"), which is China's Grade A
State business entity operated by CYL, responsible for deploying
and utilizing network technology to serve Chinese youth. China
Youth Goyor is in charge of CYL's WIFI Channel Technology
Development and Operation, setup and maintenance of several portals
of CYL's China Youth Net including its WIFI Channel, Game Channel,
Juveniles Cyber Navigation Portal, Intra High School Clubs &
Alliances Platform. Also, it has organized several large events
hosted by the CNTC, including College Student Green Game Animation
Design Competition, Green Mobile Game Collection Activity, and
ChinaJoy sub-Forum.
About Poynt Corporation
Poynt Corporation (about.poynt.com) (OTCQX:PNYTF)(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 all major smartphone and tablet platforms in nine
countries. 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 and in the United States on the OTCQX under the
symbol PNYTF.
Important Cautions Regarding Forward-looking Statements
This news release contains forward-looking statements relating
to: anticipated user rates of the China Youth Poynt Platform in
China; the ability of CYL to deliver and introduce the China Youth
Poynt Platform to its members; estimates of the number of future
smart phone users in China; the expected role of CYL in furthering
the business of the China JV; the opportunities for expansion in
the Asian market; terms of the China JV, including satisfaction of
all items and conditions relating to the commencement of the China
JV's operations; future contingent payments, loans and other
transaction matters to be completed in the future; the anticipated
features of the China Youth Poynt Platform; the anticipated
business of the China JV, including agreements with various service
providers offering the China JV's products on a pre-load
subscription based model, permits, contractual relationships and
penetration of the market in China; anticipated user uptake and
other statements that are not historical facts. 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: the ability of the China
JV to obtain anticipated permits, contracts and penetration of the
market in China; the acceptance rate of the China Youth Poynt
Platform by users; the anticipated number of devices on which Poynt
will be virtually preloaded or made available as a preload; the
ability of CYL to introduce the China Youth Poynt Platform to its
members at the rates anticipated, or at all; future technological
developments; delays bringing the China Youth Poynt Platform to
market; the ability of the China JV to consummate agreements with
local companies in China necessary to facilitate the roll-out of
the China Youth Poynt Platform in China; the ability of Poynt to
successfully repatriate funds generated in foreign jurisdictions;
compliance by Poynt and its partners of applicable foreign corrupt
practice legislation; reliance on in-country staff and personnel to
run and efficiently manage the China JVs business; the cost of
expanding product lines; the impact of increasing competition; the
continuity of existing business relationships, including dependence
on CYL and its associated and affiliated entities; the continued
successful development, implementation and execution of the Poynt
platform; continued growth in number of active users of the Poynt
platform; conditions in general economic and financial markets; the
ability to complete previously announced transactions; ability to
obtain all necessary regulatory approvals; and our ability to
obtain financing on acceptable terms, including Poynt's ability to
finance its future commitments relating to the China JV.
Material risk factors that could cause actual results to differ
materially from the forward-looking information include, but are
not limited to: the inability of the China JV to successfully
commence operations in the timeframes anticipated, or at all; the
inability to secure contracts, permits and all other regulatory
approvals related to the China JVs business; the incorrect
assessment of the Chinese market and the potential benefits of the
China JV; the inability of Poynt Corp. to fund its obligations;
reliance on third parties; risks in conducting business in China,
including (but not limited to) government nationalization, currency
risks, inflation and compliance with domestic laws and regulations;
risk that the China JV will not be able to comply with all
applicable laws in conducting its business, including, but not
limited to foreign corrupt practices legislation; the acceptance
rate of the China Youth Poynt Platform by smart phone users is
lower than anticipated; the risk that China Youth Poynt Platform
will not be virtually preloaded or made available as a preload on
the anticipated number of devices; the inability of CYL to
introduce the China Youth Poynt Platform to its members at the
rates anticipated, or at all; the inability of the China JV to
consummate agreements with local companies in China necessary to
facilitate the roll-out of the China Youth Poynt Platform in China;
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;
the success of the Company's brand development efforts; risks
associated with strategic alliances; failure of counterparties to
perform on contracts; failure to successfully negotiate contracts;
failure to successfully negotiate additional preload agreements;
reliance on distribution channels; product concentration; need to
develop new and enhanced products; failure to obtain necessary
regulatory approvals; potential product defects; our 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 our Annual Information Form for the year ended December
31, 2010 which is available on our SEDAR profile
(www.sedar.com).
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 forward-looking statements identified above.
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 European Media Communications Contact: CC-Group
Communications Ltd., for Poynt Corporation Nicole Littlewood or
Howard Jones +44 118 920 7650poynt@ccgrouppr.com North American
Public Relations Contact: Global Results PR for Poynt Corporation
Valerie Christopherson 949-608-0276poynt@globalresultspr.com
Investor Relations Contact: Liolios Group, Inc. Scott Liolios or
Matt Glover 949-574-3860info@liolios.com
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