Function(x) Inc. Compliant with Nasdaq Listing Criteria

NEW YORK–(BUSINESS WIRE)–Function(x) Inc. (FNCX) (the
“Company”) today announced that on November 1, 2016, the Company was
formally notified by the Nasdaq Hearings Panel (the “Panel”) that the
Company has evidenced compliance with all requirements for continued
listing on The Nasdaq Capital Market, including the minimum $1.00 bid
price and $2.5 million stockholders’ equity requirements. The Panel
further indicated, however, that the Company will remain subject to a
“Panel Monitor” as that term is defined under Nasdaq Listing Rule
5815(d)(4)(A), through November 1, 2017. On February 23, 2016, the
Company received notice from the Staff indicating that the Company did
not satisfy the minimum stockholders’ equity requirement and that its
securities were therefore subject to delisting. The Company appealed the
Staff’s determination and appeared before the Panel in March 2016,
subsequent to which the Panel ultimately issued the November 1, 2016
determination regarding the Company’s continued listing on The Nasdaq
Capital Market.

Under the terms of the Panel Monitor, in the event the Company’s
stockholders’ equity falls below $2.5 million during the monitor period
and the Company does not qualify for continued listing under an
alternative to the stockholders’ equity requirement, the Panel will
promptly conduct a hearing with respect to the stockholders’ equity
deficiency. Furthermore, in the event the Company fails to comply with
any other requirement for continued listing during the monitoring
period, the Company will be provided written notice of the deficiency
and an opportunity to present a definitive plan to regain compliance
directly to the Panel. That is, the Company will not be permitted to
provide the Nasdaq Listing Qualifications Staff (the “Staff”) with a
plan of compliance with respect to any deficiency that arises during the
monitor period, and the Staff will not be permitted to grant additional
time to the Company to regain compliance with any requirement,
notwithstanding Nasdaq Listing Rule 5810(c).

About Function(x) Inc.

Function(x) operates Wetpaint.com, the leading online destination for
entertainment news for millennial women, covering the latest in
television, music, and pop culture and Rant, a leading digital publisher
with original content in 13 different verticals, most notably in sports,
entertainment, pets, cars and food. Function(x) Inc. is also the largest
shareholder of DraftDay Gaming Group, which is well-positioned to become
a significant participant in the expanding fantasy sports market,
offering a high-quality daily fantasy sports experience both directly to
consumers and to businesses desiring turnkey solutions to new revenue
streams. Function(x) Inc. also owns Choose Digital, a digital
marketplace platform that allows companies to incorporate digital
content into existing rewards and loyalty programs in support of
marketing and sales initiatives. For more information, visit www.functionxinc.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and as
defined in the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve inherent risks and
uncertainties that could cause actual results to differ materially from
those projected or anticipated. All information provided in this press
release is as of the date of this release. Except as required by law,
Function(x), Inc. undertakes no obligation to update or revise publicly
any forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements are
made or to reflect the occurrence of unanticipated events.

Contacts

For Function(x):
Investors:
Birame Sock, 212-231-0092
President
& Chief Operating Officer
bsock@functionxinc.com
or
Media
Relations:
IRTH Communications
Robert Haag, 866-976-4784
Managing
Partner