AUSTIN, Texas--(BUSINESS WIRE)--Perk Inc. (TSX:PER) (“Perk” or “the Company”), the Rewarded Engagement Platform that connects brands with consumers, today announced that pursuant to a series of transactions it has completed the sale of Corona Labs Inc. (“Corona”) to Roj Niyogi, Chief Executive Officer of Corona, and the purchase for cancellation of all of the shares of Perk held by Mr. Niyogi (collectively, the “Transaction”). Perk and Mr. Niyogi entered into a stock purchase agreement earlier today in respect of the Transaction (the “Agreement”) and the Transaction closed concurrently upon signing of the Agreement.
In connection with the completion of the Transaction, Mr. Niyogi returned to Perk for cancellation 1,879,532 common shares and 1,505,972 Class A restricted voting shares in the capital of Perk representing all of the shares held by Mr. Niyogi in Perk and Perk paid to Mr. Niyogi aggregate cash proceeds of USD$1,750,000. Additionally, over the 12 month period following closing of the Transaction, Perk will pay up to a maximum of USD$750,000 in services to help facilitate the transition of Corona’s operations to Mr. Niyogi.
Mr. Niyogi has further announced that he has stepped down from his roles as President and Board Member of Perk effective today to focus on leading Corona. In connection with his resignation, the 410,000 options to acquire common shares in the capital of Perk held by Mr. Niyogi pursuant to Perk’s employee stock option plan have been cancelled.
As of the date hereof, after taking into account the Transaction, there are 19,475,349 common shares and 652,502 Class A restricted voting shares in the capital of Perk issued and outstanding.
Ted Hastings, Chief Executive Officer of Perk, stated: “We acquired Corona last year with the goal of getting access to a large pool of third party app developers to rapidly extend our Perk platform. We integrated our platform earlier in 2016 and as the competition for mobile development engines accelerated we looked at strategic options that would allow both Perk and Corona to thrive given the increased investment required for Corona. We are very pleased with the agreement we completed with Roj for several reasons - most importantly it will allow both Perk and Corona to focus and invest appropriately. Perk is able to continue to distribute our rewards platform through Corona through an exclusive partnership while redeploying the previous investment in Corona, which was in excess of USD$1,000,000 on a quarterly basis towards accelerated sales and marketing efforts that will improve Perk’s business fundamentals. I’d like to thank Roj for his contribution to Perk from co-founding the business to leading Corona as a global mobile development engine.”
Perk retains a strategic relationship with Corona Labs, as the exclusive rewards platform for Corona’s community of 300,000+ developers worldwide.
Mr. Niyogi stated: “I’m excited for the next chapter in building Corona and also for the ongoing partnership with Perk. It has been an amazing experience from co-founding Perk, taking it public on the TSX and now focusing on Corona.”
Additional information regarding the Transaction can be found in the Material Change Report filed by the Corporation in respect of the Transaction, which report is available on SEDAR.
Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk's insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.
Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.
About Corona Labs
Corona is the leader in 2D game and app development and is reinventing how the world builds apps and games for mobile, connected TV, and desktop platforms. Corona’s flagship product, Corona SDK, is the world’s most advanced development platform, empowering developers to build apps faster for iOS, Android, tvOS, OS X, and Windows – all with a single code base. Experienced by more than 300,000 developers around the globe and with hundreds more signing up daily, apps built with the Corona platform enjoy a combined total of over 1.6 billion user sessions each month.
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including which may relate to, but which may not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; and the success of new products developed by Perk; Perk’s ability to retain key members of its management team. Perk does not undertake to update any forward-looking statement, except as required by law.