By: Dylan Sikes - AllPennyStocks.com News

Tuesday, November 5, 2013

The Nasdaq Composite Index is pulling back on Tuesday, taking a breather after hitting more than 13-year highs the week prior. The Nasdaq is still well below record highs, but to keep it in perspective, the index rose above 5,000 in the year 2000 at the height of the Internet bubble. When that bubble burst, the Nasdaq plunged all the way down to 1,108. Since then, it’s been a steady climb underscored by strength and development, not the hype that drove the tech-rich index to those highs more than a decade ago. Although the Nasdaq is the standard by which tech is generally measured, the growth of the industry transcends markets. As we’ve noted in a previous article on the Canadian tech sector, there are plenty of interesting junior companies making headway in the space that are worthy of some due diligence for their forward-thinking technologies. Toronto-based Sprylogics International Corp. (TSX-Venture:SPY), a tech provider of local mobile search and messaging monetization solutions, delivered patent news from its subsidiary, Poynt Inc., on Tuesday that may generally not be considered market moving, but has apparently grabbed the markets attention as gauged by an increase in trading volume. The reason for the increase perhaps rests in the potential of the new patent.

Sprylogics acquired Poynt in August in exchange for a two-year note in the amount of $2.5 million and $500,000 in Sprylogics shares. Poynt was owned and operated in a 50/50 partnership by Intertainment Media Inc. (TSX-Venture:INT) and Avenza Holdings Inc. The award-winning Poynt application is a local search app that connects people with businesses, including movie theatres, restaurants or events close to their location. It has been downloaded more than 20 million times.

A new Singapore patent was issued to Poynt for a “method of using location information for advertising system based on 3-dimensional shapes.” Without getting to granular on the ins-and-outs of the patent, the method has to do with delivering advertising based upon the longitude, latitude and altitude of an electronic device as well as its direction and speed of movement in a three-dimensional geographical region. Based upon these metrics, appropriate advertisements can be sent to the device.

The mobile advertising space is extremely competitive, with advertisers looking for the most targeted means possible to reach specific audiences. Poynt’s new patent, protects its intellectual property in an emerging market that is becoming the focus of mobile advertising providers.

"These patents help us enhance our competitive position in the marketplace, as we commercialize the capabilities behind them," said Marvin Igelman, chief executive of Sprylogics, in a statement today. "This recently granted patent expands our existing patent inventory, and demonstrates the breadth and depth of our innovative engineering and scientific expertise, and the richness of our intellectual property."

Spyrologics now has been granted a total of seven patents. Three U.S. patents were acquired in the purchase of Poynt.

Shares of SPY hit lows of 35 cents in June, but have been on the climb since, rising as high as 80 cents in September. According to Yahoo Finance, the 3-month average trading volume is about 64,000 shares each day. More than twice that amount has exchanged hands on Tuesday, with volume at 147,500 with more than two hours left in the session. Shares moved up at first, but are currently flat at 70 cents on the day.

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