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Poynt Corporation Announces Asian Expansion with Formation of Joint Venture with the People's Republic of China's China Youth League
CALGARY, ALBERTA, Feb 13, 2012 (MARKETWIRE via COMTEX) --
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 7650
poynt@ccgrouppr.com
North American Public Relations Contact:
Global Results PR for Poynt Corporation
Valerie Christopherson
949-608-0276
poynt@globalresultspr.com
Investor Relations Contact:
Liolios Group, Inc.
Scott Liolios or Matt Glover
949-574-3860
info@liolios.com
SOURCE: Poynt Corporation
http://www.poynt.com
mailto:poynt@ccgrouppr.com
mailto:poynt@globalresultspr.com
mailto:info@liolios.com
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