VANCOUVER, British Columbia, April 9, 2015 (GLOBE NEWSWIRE) -- Fundamental Applications Corp. ("Fundamental") (CSE:FUN), a leading developer of innovative, millennial-targeted smartphone applications announces the closing today of its acquisition of Foro Technologies Inc., a software development company that creates mobile smartphone applications. This strategic acquisition significantly expands the IP holdings of Fundamental Applications and adds two new products to their offering.
Founded in December 2012 by serial entrepreneur Ali Saheli, Foro Technologies developed and launched Truth: a one-to-one anonymous messaging app, and its namesake Foro: a peer-to-peer mobile ecommerce marketplace. Truth was launched in February 2014 and has approximately 130,000 active users. Foro went live in 2013 and has over 8,500 active users.
"Acquiring Foro Technologies brings Fundamental's shareholders two innovative products with active and dedicated user-communities," commented Richard Whitehead, CEO of Fundamental Applications. "The Foro mobile app represents a key technology we feel has the ability to disrupt the peer-to-peer ecommerce space. Foro was built for the needs of students, which provides us a specific, quantifiable, and accessible target audience. Our plan is to systematically launch Foro in geographic regions with large student populations. Based on the current success of Foro and quantifiable pent-up demand, we anticipate significant uptake in the coming months."
"Following the development and deployment of Foro and Truth, I have been actively looking for methods to bring these apps to a larger audience," said Ali Saheli, Foro Founder. "As early as our first discussions, the synergy between my development philosophy and the team at Fundamental was very apparent. Our common vision and proven capabilities are a recipe for success for these two products."
As a student targeted mobile ecommerce platform, the estimated North American market size for Foro is 5,084 campuses with a combined total of 24.5 million students.
Pursuant to the terms of the acquisition, Fundamental exchanged 1.7 million shares for 100% of the issued and outstanding shares of Foro. 600,000 of the 1.7 million shares will be released immediately and the remaining 1.2 million shares will be subject to escrow restrictions and released upon the achievement of certain milestones. 600,000 of the escrowed shares will be released once Foro reaches a minimum of 25,000 regular users of Foro and the remaining 600,000 escrowed shares will be released once Foro reaches 50,000 regular users of Foro. If the milestones have not been achieved within 12 months of closing of the acquisition of Foro, all escrowed shares not yet released will be cancelled. Concurrent with the acquisition, Fundamental issued 464,927 shares and contributed a cash payment of $50,000 to payout certain creditors of Foro.
Further to the Company's news release dated March 30, 2015, Fundamental completed a private placement of 1,393,778 units at a price of $0.18 per unit for gross proceeds of $250,884.04. Each unit is comprised of one common share and one half common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share of Fundamental at a price of $0.30 at any time prior to April 9, 2017.
Finder's fees totaling $7,245 in cash were paid and 40,250 in common share broker warrants were issued in connection with this private placement. All securities issued under this private placement are subject to a statutory four month hold period and will not be tradeable until August 10, 2015.
Fundamental Applications Corp. (CSE:FUN) designs, develops, markets, and acquires innovative mobile applications targeted at the "Millennials" generation; people born in an age of digital technology, internet access, and smart phones. This demographic is an early adopter of mobile technology, has significant discretionary income, and is lifestyle driven with a willingness to try new things. Our three leading mobile platforms are Foro: a peer-to-peer mobile ecommerce marketplace, Truth: a one-to-one anonymous messaging app previously listed in the top 100 social networking apps in the Apple App Store, and SerumTM: an app that enables users to post questions to their friends and receive answers anonymously. Our motivation is simple. We make the world better by offering fun and easy-to-use mobile applications that improve lifestyles and personal safety. For more information, visit us online at www.funappcorp.com.
Further information about the Fundamental is available under its profile on the SEDAR website www.sedar.com and on the CSE website www.thecse.com. For further information on Fundamental, please contact:
This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of Fundamental. Forward-looking information is based on certain key expectations and assumptions made by the management of Fundamental. Although Fundamental believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Fundamental can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. Fundamental disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Source:Fundamental Applications Corp.