Categories: SoftwareWireless

Can Poynt live to fight another day?

Poynt CEO Andrew Osis says the extension of its creditor protection will give it time to “put the company in a strong position moving forward.” Shares of Poynt (TSXV:PYN) were halted this morning, pending news. Those hoping for a lifeline from the troubled Alberta tech, however, may have been disappointed.

The announcement was that Poynt was granted an order by the Court of Queen’s Bench of Alberta extending its creditor protection until Sunday, Aug. 26, 2012, and that an agreement was made and approved by the court for debtor-in-possession (DIP) financing for $80,000 at an interest rate of 14 per cent.

Poynt agreed to issue 320,000 common shares to the lender as consideration for taking the risk of providing of the DIP financing.

CEO Andrew Osis says the extra time will help the company fill out the details of a plan that may yet provide some relief for beleaguered shareholders:

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“As we work to address all creditor obligations in an efficient and timely manner, this second interim financing allows us the flexibility to continue operations as usual and pursue strategic business opportunities that will maximize shareholder value,” he said, adding: “We anticipate that our forthcoming long-term business plan, prepared in accordance with the BIA, will put the company in a strong position moving forward.”

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On July 6th, Poynt filed a notice of intention to file a proposal under Canada’s Bankruptcy and Insolvency Act, reporting that it was not in a position to meet its obligations to secured and unsecured creditors. Today is the third time the company’s creditor protection was extended, the Court of Queen’s Bench of Alberta yesterday said Poynt would have only until August 20th.

After a brief time as a TSXV market darling, the fortunes of Poynt the company diverged from the fortunes of its eponymous app, which was a runaway success. Around the time the app was passing the sixteen million user mark, the company was reporting it had 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.

At press time, shares of Poynt were even at $.02 cents.

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Tagged with: pyn
Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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