Perk.com Inc. Signs Asset Purchase Agreement to Acquire Viggle App

AUSTIN, Texas–(BUSINESS WIRE)–Perk.com Inc. (TSX:PER) (“Perk” or the “Company”),
a leading cloud-based mobile rewards platform provider, today announced
that it has signed an asset purchase agreement (the “Agreement”)
with Viggle Inc. (“Viggle”) (NASDAQ:VGGL), a mobile and web-based
entertainment marketing platform.

Pursuant to the Agreement, Perk will purchase the rights to the Viggle
name and brand as well as the entirety of Viggle’s interests in the
Viggle App, a mobile and tablet application that uses incentives to make
content consumption and discovery more rewarding for media companies,
brands and consumers (the “Acquisition”). Closing of the
Acquisition is subject to customary closing conditions and is expected
to be completed in the first quarter of 2016. Upon the closing of the
Acquisition, the Company will integrate the Viggle App’s existing sales
team into its operations and intends to continue operating Viggle’s New
York office location.

Launched in 2012, the Viggle App is an advertising platform that works
on mobile phones and tablets allowing users to earn rewards by watching
TV and listening to music. After downloading and creating an account,
consumers are able to play games along with TV shows, share comments
through social media, answer trivia questions and discover more about
the show. Users can also discover new music through the app. The Viggle
App reported revenues of approximately USD $4 million for its fiscal
first quarter 2016, ended September 30, 2015, and had over 10 million
registered users as of this date.

Strategic Rationale

Perk noted a number of key objectives during its IPO process, such as
establishing a direct advertising sales team which drives increases in
CPM and fill rates, increasing scale of its owned and operated mobile
user base which generates more available advertising inventory and
thereby increases revenue, and establishing a broad third party app
customer base. The acquisition of Viggle’s App and rewards platform
accomplishes a number of these strategic objectives, including:

• Acquisition of an award-winning cloud-based mobile rewards app with
  over 10 million registered users;
• Addition of established direct ad-sales team and access to
  relationships with several well-known brands which will improve Perk’s
  CPM and fill rates;
• Larger Perk ecosystem with enhanced scale creating a combined user
  base of over 20 million registered users and over USD $50 million in
  rewards issued to users; and
• Strengthening Perk’s position in the rewards market through its
  acquisition of the Viggle patent portfolio.

Management Commentary – Perk

Ted Hastings, Chief Executive Officer of Perk, stated: “Viggle shares a
similar vision as Perk of creating an interactive environment that
benefits both users and advertisers by rewarding users for their daily
activities. With the Viggle App, consumers are introduced and guided to
various forms of media while advertisers are provided with a vehicle
that delivers their message directly to their target audiences. We feel
the app will blend seamlessly into our sphere of mobile applications and
provide users with greater options of quality content and reward
benefits. We view this transaction as an exciting opportunity not only
for the Company, but for our users, advertising partners, employees and
our shareholders. We look forward to keeping investors apprised of our
progress as we move towards closing.”

Management Commentary – Viggle

Robert Sillerman, Chief Executive Officer and largest shareholder of
Viggle, commented: “We believe that this combination is the next logical
step in the evolution of digital reward platforms by providing scale to
compete with an expanding array of online and mobile content available
to users. We felt that by aligning with a seasoned management team and
successful operator like Perk, that our shareholders will realize the
full potential of the Viggle App’s development. Both Viggle and Perk
have a strong commitment to their user base, and the integration of the
Viggle App to Perk’s rewards platform provides new opportunities to
further expand the market. In addition, our management team can devote
resources towards the continuing development of Viggle’s existing suite
of products. I am excited to partner with Perk in the next chapter of
our collective journey.”

Transaction Details

As consideration, Viggle will be entitled to receive:

• 1,500,000 Perk common shares (“Perk Shares”) valued at
  approximately USD $4.7 million, based on the closing price per Perk
  Share of CDN $4.30 (USD $3.13) on December 11, 2015, less 130,000 Perk
  Shares if Viggle elects to satisfy the loan in Perk Shares, as
  described below;
• 2,000,000 Perk Shares if the Company’s total revenues exceed USD
  $130.0 million for the year ended December 31, 2016 or December 31,
  2017 (the “Earn-Out”);
• A warrant (“Warrant 1”) entitling Viggle to purchase 1,000,000
  Perk Shares at a strike price of CDN $6.25 per Perk Share in the event
  the Perk Shares’ volume weighted average price (“VWAP”) is
  greater than or equal to CDN $12.50 for 20 consecutive trading days in
  the two year period following the closing of the Acquisition; and
• A warrant (“Warrant 2”, and together with Warrant 1, the “Warrants”)
  entitling Viggle to purchase 1,000,000 Perk Shares at a strike price
  of CDN $6.25 per Perk Share in the event that the Perk Shares’ VWAP is
  greater than or equal to CDN $18.75 for 20 consecutive trading days in
  the two year period following the closing of the Acquisition.

Perk will also assume certain liabilities of Viggle, including Viggle’s
points liability.

In connection with the agreement, Perk has also agreed to loan Viggle
USD $1.0 million. The loan is repayable by Viggle upon close of the
transaction in either (i) cash or (ii) by reducing the number of Perk
Shares issued to Viggle on closing from 1,500,000 to 1,370,000.

On closing of the Acquisition, Viggle is expected to hold approximately
7% of the issued and outstanding Perk Shares (after giving effect to the
Acquisition). Assuming Viggle’s exercise of the Warrants and the vesting
of the Earn-Out, Viggle may hold up to 22% of the issued and outstanding
Perk Shares. Perk may issue Class A Restricted Voting Shares of Perk to
Viggle in lieu of Perk Shares in connection with the Warrants and/or the
Earn-Out.

The Acquisition has been unanimously approved by the board of directors
of Perk and Viggle. Beacon Securities Limited provided an opinion to the
board of directors of Perk that, as of the date of the opinion and based
on and subject to certain assumptions and limitations set out therein,
the consideration to be paid by Perk pursuant to the Acquisition is
fair, from a financial point of view, to Perk.

The transaction is subject to the approval of the Toronto Stock Exchange
(the “TSX”). Assuming Viggle’s exercise of the Warrants and the
vesting of the Earn-Out, the maximum number of Perk Shares issuable
pursuant to the Acquisition is 5,500,000, which, before giving effect to
the Acquisition, represents 27.9% of the currently issued and
outstanding Perk Shares. Under TSX rules, the Acquisition requires
approval from the Perk shareholders by majority vote since the number of
Perk Shares issuable in connection with the Acquisition may exceed 25%
of the total number of Perk Shares issued and outstanding (before giving
effect to the Acquisition) and Viggle may materially affect control of
Perk. Perk has obtained shareholder approval by written consent from
shareholders holding 61.5% of Perk’s outstanding common shares. Perk
expects the TSX will accept this written consent supporting the
Acquisition and will not require Perk to hold a shareholder meeting.

Pursuant to the terms of the Agreement, Viggle has agreed to certain
lock-up, transfer and voting provisions in respect of the Perk Shares
issued or issuable to it in connection with the transaction. Viggle and
Perk have also agreed to reciprocal standstill provisions.

About Perk

As a leading mobile rewards platform, Perk brings together the interests
of consumers, advertisers, and publishers by offering consumers rewards
such as Perk Points and other digital goods. Perk Points can be redeemed
for gift cards, cash, or loaded on to Perk Plastik, a re-loadable
branded debit card. Perk works with brands and publishers to reach
consumers through truly engaging and innovative formats using rewards as
a way to achieve maximum engagement of their brands and products.

Perk currently owns and operates 15 mobile applications that allow
members to earn rewards such as Perk Points and digital goods. Perk also
operates numerous websites as well as AppTrailers, a leading mobile
video rewards app. In addition to offering rewards to members through
its own mobile applications and websites, Perk launched its Perk
Platform, Appsaholic which allows mobile and desktop publishers to
utilize rewards to engage and entice users through the publisher’s own
applications and websites. The Perk Platform was further expanded
through the acquisitions of SuperRewards, a rewards and alternative
payments platform for publishers and developers as well as Corona Labs,
an app development platform that allows developers to develop apps for
both iOS & Android.

Additional information about Perk can be found at its corporate website:
ir.perk.com.

About Viggle

Viggle is an entertainment marketing and rewards platform as well as a
fantasy sports provider that rewards its members for watching TV shows,
discovering new music and playing interactive games. The Viggle Platform
had an average monthly total reach of 18.6 million for the three months
ended September 30, 2015, including nearly 10 million Viggle registered
users. Since its launch, Viggle members have redeemed nearly USD $29
million in rewards for watching their favorite TV programs and listening
to music. Members can use Viggle’s store, accessible through Viggle.com,
to redeem their Viggle Points for TV show, movie and music downloads.
Viggle operates Wetpaint, which offers entertainment and celebrity news
online; NextGuide, maker of technology that helps consumers search for,
find, and set reminders for TV shows and movies; and 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. Viggle is also the largest shareholder
of DraftDay Gaming Group, the third-largest operator in the daily
fantasy sports industry, which offers Viggle members an exciting and
ever-growing selection of real-time fantasy sports games with monetary
rewards. For more information, visit www.viggle.com.

Cautionary Statement Regarding Forward Looking
Statements

This press release contains forward-looking statements, including with
respect to Perk’s business: the anticipated benefits and costs of the
Acquisition; the anticipated effect of the Acquisition on Perk’s
strategy, operations and financial performance; the completion of and
timing for completion of the transaction; Perk’s ability to grow its
active consumer base; 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 before and
following the Acquisition; 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 Appsaholic SDK; and Perk’s ability to successfully enter new
business areas and geographic markets, including integration of the
acquired business from Viggle; success of new products developed by Perk
and Perk’s ability to retain key members of its management team. We do
not undertake to update any forward-looking statement, except as
required by law.

There can be no assurance that the Acquisition will occur or that the
anticipated benefits and effects of the transaction will be realized.
The Acquisition is subject to approval of the shareholders of Perk and
Viggle and the fulfillment of certain conditions and there can be no
assurance that any such approvals will be obtained and/or any such
conditions will be met. The Acquisition could be modified, restricted or
terminated.

Contacts

Perk.com Inc.
Ted Hastings
Chief
Executive Officer
ted@perk.com
or
Jeff
Collins
Chief Financial Officer
jeff@perk.com
or
Investor
Relations:
The Equity Group Inc.
Adam
Prior, 212-836-9606
Senior Vice President
aprior@equityny.com
or
Terry
Downs, 212-836-9615
Associate
tdowns@equityny.com