Self-improvement app with more than 60 million
lifetime downloads provides immediate positive cash flow
accretion
TORONTO, March 1, 2021 /CNW/ - PopReach Corporation
("PopReach" or the "Company") (TSXV:
POPR) (OTCQX: POPRF), a free-to-play game publisher focused on
acquiring and optimizing proven game franchises, today announced
that it has entered into a binding asset purchase agreement with
Brainbow Limited to acquire substantially all of the assets
relating to the "Peak - Brain Training" app ("Peak") for
aggregate cash consideration of US$5
million. Since its launch in 2014, Peak has been downloaded
more than 60 million times through the Apple App Store and Google
Play.
"Peak is a great addition to our portfolio that meets all of our
key acquisition criteria – a well-established franchise with a
multi-year track record, a large and loyal community of active
users, award winning gameplay, and positive cash flow generation,"
said Jon Walsh, CEO of PopReach. "It
also brings us into the evergreen category of self-improvement
apps, with a proven brand that we expect to grow; we are excited to
complete this transaction, and continue to focus on our acquisition
strategy given the impressive deal pipeline we've established."
Peak is an entertainment based cognitive training app that
offers over 45 games to provide users with daily brain workouts
that may sharpen memory, attention, problem-solving mental agility,
language, coordination and emotion control. It is offered as a
free-to-play app with an advertising and subscription-based revenue
model, offering monthly and yearly paid plans. Peak was named one
of the "Best Apps of 2014" by the Apple App Store, and "Best
Self-Improvement App" in 2015 and 2016 by Google Play. In
the United States life to date,
Peak has more than 131K reviews on
Apple App Store (4.66 out of 5 rating), and more than 475K reviews on Google Play (4.31 out of 5
rating).
Added Christopher Locke,
President and COO of PopReach, "We expect the Peak assets to fit
seamlessly into our development platform and operating model. This
subscription based revenue stream brings a higher level of
predictability along with immediate positive cash flow accretion,
and we have a clear path to executing against operational synergies
that will drive meaningful returns on investment that are in line
with the other major franchises in our portfolio."
The aggregate cash consideration is payable as US$3 million on closing, and US$2 million on completion of certain
post-closing transitional matters; the Company intends to use cash
on hand to pay the entire US$5
million. As the transaction is subject to customary
closing conditions, the Company expects closing to occur on or
before March 31, 2021, with the
post-closing transitional matters to be completed within two months
of closing.
About PopReach Corporation
PopReach, a Tier 1 Issuer on the TSX Venture Exchange, with
shares also trading on OTCQX® Best Market, is a free-to-play game
publisher focused on acquiring and optimizing proven game
franchises. The Company has acquired 12 successful franchises
competing mainly in the North American market, including Smurfs'
Village (IP under license), Kitchen Scramble, Gardens
of Time, City Girl Life, War of Nations and
Kingdoms of Camelot. The Company's games are enjoyed by over
1.2 million unique players a month. PopReach, headquartered in
Toronto, employs a team of over
120 experts in Toronto,
Vancouver, and Bangalore, India.
Additional information about the Company is available at
www.sedar.com
FORWARD-LOOKING INFORMATION
Certain information in this news release constitutes
forward-looking statements and forward-looking information under
applicable Canadian securities legislation (collectively,
"forward-looking information"). Forward-looking information
include, but are not limited to, statements with respect to and the
business, financials and operations of the Company. Statements
containing forward-looking information are not historical facts but
instead represent management's expectations, estimates and
projections regarding future events. Forward looking information is
necessarily based on a number of opinions, assumptions and
estimates that, while considered reasonable by the Company as of
the date of this news release, are subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, level of activity, performance or achievements
and future events to be materially different from those expressed
or implied by such forward-looking information, including but not
limited to the factors described in greater detail in the public
documents of the Company available at www.sedar.com. Although the
Company has attempted to identify important risks, uncertainties
and factors which could cause actual results to differ materially,
there may be others that cause results not to be as anticipated,
estimated or intended. Investors are cautioned undue reliance
should not be placed on any such information, as unknown or
unpredictable factors could have material adverse effects on future
results, performance or achievements of the Company. The Company
does not intend, and does not assume any obligation, to update this
forward-looking information except as otherwise required by
applicable law.
Neither the 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.
SOURCE PopReach Corporation