Poynt CEO Andrew Osis. The Calgary-based company today announced it had filed notice of intention to file a proposal under Canada’s Bankruptcy and Insolvency Act. The worst news for Poynt (TSX:PYN) shareholders today. This morning, after its stock was halted late yesterday, the company announced it had filed notice of intention to file a proposal under Canada’s Bankruptcy and Insolvency Act.
The company said it is not currently in a position to meet its obligations to secured and unsecured creditors.
One of these creditors is Intertainment Media (TSXV:INT), whose CEO David Lucatch was a Poynt board member until resigning today.
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In March, Intertainment loaned Poynt $1.5-million at an 8% interest rate of 8% and issued Intertainment six million non-transferable bonus warrants to the company at a price of 11.5 cents per share.
Although Poynt’s eponymous app was a runaway success, recently passing the sixteen million user mark, the company was consistently in red ink. It lost $20.47-million in fiscal 2011 on revenues of just $2.4-million. In better days, Poynt was part of a national media advertising campaign for BlackBerry’s “Super Apps” and, in 2010, was named the North American winner of the third annual BlackBerry Partners Fund “Super Apps” Developer Challenge.
Intertainment Media, in a press release responding to Poynt’s notice, said the loan is “secured by the assets of Poynt under a general security agreement and an IP receivables assignment agreement, with the security interest duly perfected under the laws of Alberta. An event of default has occurred automatically as a result of non-payment in the absence of any default notice being given by Intertainment to Poynt.”
Intertainment said it would work with its advisors to obtain the best possible outcome.
At press time, shares of Poynt were down 75% to $.01 cent.