TORONTO, ONTARIO -- (Marketwired) -- 06/03/13 -- Intertainment Media Inc. ("Intertainment") (TSX VENTURE: INT) (OTCQX: ITMTF) (FRANKFURT: I4T) is pleased to report that on May 31, 2013, Sprylogics International (TSX VENTURE: SPY), ("Sprylogics" or "the Company") the international provider of innovative mobile search and messaging monetization services announced 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. (TSX VENTURE: INT) (OTCQX: ITMTF) (FRANKFURT: 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 Intertainment.
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 advertising revenue.
"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" (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".
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 laws.
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.