TORONTO,
May 31, 2013 /CNW/ - Sprylogics
International (TSXV: SPY), ("Sprylogics" or "the Company") the
international provider of innovative mobile search and messaging
monetization services announces that it has signed a Letter of
Intent to acquire Poynt Inc. ("Poynt").
Under the terms of the deal, Sprylogics will
provide the following consideration to the owners of Poynt: (i)
issue a two (2) year note in the amount of $2.5 Million (CDN) with an annual interest rate
of 6.5% payable quarterly in cash and / or stock, which will be
secured against the assets of Poynt; and (ii) issue up to
$500,000 in Sprylogics shares.
Additionally, the current owners of Poynt will retain a 10%
interest in the exploitation of Poynt patents. Sprylogics will
assume liabilities and fees associated with the purchase
transaction as well as costs associated with management of the
assets. The parties have further agreed that under certain
circumstances within the deal structure, payment of the
$2.5 Million (CDN) may be
accelerated.
Poynt acquired the assets of Poynt Corporation
through an order approved by the Queen's Bench of Alberta and is currently owned and operated in
a 50/50 partnership by Intertainment Media Inc. (TSXV:INT /
US:ITMTF / FRA:IT4) and Avenza Holdings Inc. Under the leadership
of CEO, Mr. Anthony R. Pearlman,
Poynt has made strong progress in stabilizing the technology
platform and re-establishing key content and monetization
partnerships to ensure a strong foundation for future growth.
Mr. Pearlman, subject to finalizing the
agreements, will assist with the transition to Sprylogics and will
remain the President and COO of Intertainment.
Poynt has a large and loyal international
user-base across all major smartphone platforms including IOS,
Android, Blackberry and Windows. In addition, Poynt IP assets
include a number of early stage patents granted in their key
business areas. The application's primary revenue stream is through
mobile advertising which is positioned for exponential growth over
the next few years.
Due to higher than anticipated growth, analysts
(eMarketer) have recently revised and upgraded their forecasts for
Mobile Advertising spending this year in the US, growing from
$7.29 billion in 2013 to $27.13 billion in 2017. Of note, analysts
(BIA/Kelsey) have cited search and location based advertising, the
primary revenue streams of the Poynt application, as accounting for
the largest share of mobile advertising revenue.
"The current ownership group at Poynt has done
an excellent job ensuring the continuous operations of the
application through re-establishing key relationships and stability
of the technology platform", said Marvin
Igelman, CEO of Sprylogics. "This provides us with an
excellent foundation to exploit the explosive growth of mobile
local search and mobile advertising that is happening. The market
timing could not be better and the Sprylogics management and
engineering team has the deep product and technical experience in
mobile advertising and search to make it happen."
"This is a proven team that will drive the
future product, user acquisition, and monetization strategy of
Poynt. Several key members of the Sprylogics management and
engineering team were instrumental in the first chapter of Poynt's
growth from 2010 to 2011. They helped take the application from
just over a million users on a single platform to 10 million users
on multiple platforms in a single year. I am excited to see what
they will accomplish in today's market with mass smartphone
penetration and hyper growth of mobile advertising," said
Anthony R. Pearlman, CEO Poynt Inc.
and President and COO of Intertainment Media Inc. "This also
represents a potentially significant return on our initial
investment into Poynt, while retaining an ongoing interest in the
patents associated with the Poynt products and services."
The Letter of Intent is subject to necessary
board and regulatory approval. It is anticipated that the
deal will close by June 30, 2013.
About Sprylogics
Sprylogics International develops advanced search and analysis
technology. The patent pending technology platform uses
Semantic and Machine Learning techniques to process, analyze and
interpret unstructured data including real time conversation, in
order to extract key sentiments, facts, user interests and intent.
The technology platform is currently being used to develop
innovative solutions related to search and discovery of products
and places on mobile devices. Find out more at www.sprylogics.com
or www.2ya.it
About Intertainment Media
Intertainment is one of Canada's
leading technology incubators and is focused on developing,
nurturing and investing in both North American and global
technologies and companies that provide technology solutions for
brands and consumers alike. Intertainment also owns and operates a
number of key properties including Ortsbo, Deal Frenzy, The Sweet
Card and Magnum, with investments in leading edge technologies and
social media platforms including theaudience.com, capthat.com and
Yappn.com (OTCBB:YPPN). For more information on Intertainment and
its properties, please visit www.intertainmentmedia.com.
Intertainment is headquartered in the
Toronto, Canada region, with
offices in New York, Los Angeles and San
Mateo, CA and is listed on the TSX Venture Exchange under
the symbol "INT" (TSXV:INT) and in the US on the OTCQX Market under
the symbol "ITMTF". Intertainment is also traded in Europe on the Open Market (Regulated
Unofficial Market) of the Frankfurt Exchange through the XETRA
trading platform under the symbol "I4T".
Neither 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.
Cautionary and Forward-looking Statements -
Statements contained in this news release which are not historical
facts are forward-looking statements that involve risk,
uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. There can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements. All forward-looking statements included in
this news release are based on information available to the Company
on the date hereof. The Company assumes no obligation to
update any forward-looking statements, except as required by
applicable securities laws.
SOURCE Sprylogics International Corp.