PopReach Signs Binding Agreement to Acquire Award Winning "Peak - Brain Training" App

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

Dennis Fong, Investor Relations, [phone], [email protected]; PopReach Corporation, Christopher Locke, [email protected]