Toronto-based PopReach Corp has secured a C$5 million investment from eWTP Tech Innovation Fund, an investment arm of Alibaba Group. The company said it will use the proceeds for global acquisitions and other priorities. Founded in 2015, PopReach is mobile game publisher focused on acquiring and optimizing game franchises.
TORONTO, Oct. 15, 2020 /CNW/ – PopReach Corporation (“PopReach” or the “Company”) (TSXV: POPR) (OTCQX: POPRF) announced today that, further to an initial non-binding letter of intent accepted on September 25, 2020 and a price reservation pursuant to the policies of the TSX Venture Exchange, it has received a binding subscription agreement for a strategic investment by New Insight Incentive Plan Company, a 100% owned subsidiary of eWTP Tech Innovation Fund LP (“eWTP”), the global investment arm of Alibaba Group.
Pursuant to the binding agreement and subject to the policies of, and approval by, the TSX Venture Exchange, eWTP will invest $5,000,000 in PopReach by subscribing for up to 6,944,444 common shares at a price of $0.72 per common share (representing a 10% discount to the closing price of the shares on the TSX Venture Exchange on September 24, 2020) in a non-brokered private placement (the “Private Placement”). The Company intends to use the net proceeds from the Private Placement to fund acquisitions and for other general corporate purposes.
“The team at eWTP are preeminent investors in the games industry and we are delighted to have them as shareholders of PopReach,” said Jon Walsh, Co-Founder and CEO of PopReach. “In addition to providing us with additional capital to execute against our pipeline of acquisition opportunities, we are thrilled be able to leverage eWTP’s strategic insights, connections, and expert advice as PopReach’s Special Advisor to Asia.”
CY Chen, Partner of Game Business at eWTP, added: “PopReach is a great addition to the eWTP portfolio, with a world class team and strong execution to date. We believe they have a unique and compelling growth opportunity in the free to play mobile gaming space, and we look forward to supporting the management team to help them achieve their global expansion goals.”
All securities issued in connection with the Private Placement will be subject to a statutory hold period of four months and a day from ?the date of closing.
Subject to the closing of the Private Placement, the Corporation will pay to DDM Game Studio Representation LLC a finder’s fee equal to 4.0% of the gross proceeds.
The common shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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 mobile game publisher focused on acquiring and optimizing proven game franchises. The Company has acquired 12 successful game franchises competing mainly in the North American game 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.