PopReach Acquires Self-Improvement App For US$5.0 Million

PopReach Corp (TSXV: POPR) this morning announced that it has entered into a binding purchase agreement to acquire a cognitive training app. Referred to as Peak – Brain Training, the acquisition reportedly provides immediate cash flow accretion.

The cognitive training app is to be acquired for total consideration of US$5.0 million, payable in cash. The app is free to play, but works on an advertising and subscription model, with monthly and yearly plans available. The company notes that the app has been downloaded more than 60 million times since its launch in 2014, but does not indicate current active user levels.

The company also identifies that the app has immediate positive cash flow accretion, but fails to provide specific details on revenues generated by the app on a monthly or yearly time frame. In fact, the most insight we get into the demand for the app is the vague statement of it having a “large and loyal community of active users.”

The app has reportedly been designed to provide “daily brain workouts” that is intended to improve memory, attention, problem solving mental agility, language, coordination, and emotion control.

Of the total US$5.0 million consideration to be paid, $3.0 million is payable on closing, while the remainder is to be paid upon undisclosed post-closing transactional matters. The transaction is slated to close March 31, 2021.

PopReach Corp last traded at $1.10 on the TSX Venture.

Information for this briefing was found via Sedar, PopReach, and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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