Intertainment Media as Secured Creditor Confirms Poynt Corporation Receivership
TORONTO, CANADA--(Marketwire - Nov. 1, 2012) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT)(OTCQX:ITMTF)(FRANKFURT:I4T) the secured lender to Poynt Corporation ("Poynt") announces that on October 31, 2012, Hardie & Kelly Inc. of Calgary, AB were appointed receiver of Poynt and its asset by order of the Court of Queen's Bench of Alberta (http://feeds.mwnewsroom.com/multiplied_media/feed/article?id=1651169). Concurrent with the appointment of the receiver, the Court established a sales process to work towards recovering maximum value for the assets of point.
Intertainment considers that the Poynt application and its assets have significant value well in excess of its secured creditor position of approximately CDN $1.7 Million plus costs and unsecured position of CDN $150,000. In Poynt's last reported unaudited interim financial statements announced on August 29, 2012 for the period ended June 30, 2012, non-cash assets were reportedly valued in excess of CDN $21.5 Million.
Poynt announced on October 9, 2012 that its user base was in excess of 10 Million users on the Android platform alone. On September 17, 2012, Poynt released its new version of its application for iPhone and stated that year over year its unique iPhone user based had growth 132%. On July 31, 2012 Poynt reported that its overall unique user base, at that time, was 17 Million. The Poynt application is actively pre-loaded on new mobile phones with a number of wireless carriers.
In March 2012, after Intertainment provided Poynt with a short term secured loan for CDN $1.5 Million, the parties initiated discussions and development of enhancements to the Poynt application which Intertainment expects, should they be able to be fully implemented and continue to operate, will enhance the value of the Poynt application and create additional revenues for both parties. These include, Intertainment's real-time experiential communications platform, Ortsbo, which offers instant communications in over 65 languages; Ad Taffy, which provides enhanced "click to call" capabilities, integrating actionable content with immediate communications connectivity; Deal Frenzy which offers unique value programs to a growing audience and Intertainment's affinity solutions, including the Sweet Card, which provides pre-paid debit and virtual wallet platforms.
Throughout Poynt's BIA creditor protection process, Intertainment worked diligently with Poynt, its counsel and the Trustee to support the efforts of all parties and their court motions to work towards a solution to see Poynt emerge from creditor protection. Intertainment made the court application to appoint the receiver only after Poynt exhausted all efforts to replace the initially announced loan proceeds of $1 Million on October 15, 2012. These funds were not received and the Court terminated the creditor protection proceedings causing Poynt to become bankrupt.
The Receiver will conduct a sale process of the Poynt assets and Intertainment, if it deems appropriate, will participate alone, or with an appropriate operational partner in the sales process and may entertain offers to sell its secured position, while also looking to maintain a commercial relationship for its products and programs.
About Intertainment - www.intertainmentmedia.com
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 Ad Taffy, itiBiti (KNCTR), Ortsbo, Deal Frenzy, The Sweet Card and Magnum, with investments in leading edge technologies and social media platforms including www.theaudience.com. 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" (TSX VENTURE: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".
Forward Looking Information
This news release contains certain "forward-looking information" within the meaning of such statements under applicable securities law including statements relating to the Placement.
Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on this forward-looking information.
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Intertainment Media Inc.