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
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
"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.
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
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
SOURCE: Sprylogics International Corp.
For further information:
Sprylogics International Corp.
David Berman, CFO
(905) 761-9200, Ext. 21
Intertainment Media Inc.:
David Lucatch, CEO