press release: Wow Unlimited Media and Bell Media Teaming for Kids and Youth Channel

By Mike Valiquette

Wow Unlimited Media and Bell Media Announce Strategic Partnership in Kids and Youth Entertainment

TORONTO, ON and VANCOUVER, BC–(Marketwired – June 07, 2017) – Wow Unlimited Media Inc. (“Wow“) (TSX VENTURE: WOW.A) (TSX VENTURE: WOW.B) and Bell Media (“Bell Media”) are pleased to announce that they have entered into a term sheet (the “Term Sheet“) pursuant to which Wow proposes to acquire a Category B specialty service from Bell Media (the “Transaction“) in exchange for equity in Wow.

Michael Hirsh, Chairman and CEO of Wow, said: “This strategic partnership will drive our planned multi-platform rollout of a new paradigm in entertainment for kids and youth across North America. In addition, the support and collaborative efforts of Canada’s leading media and telecommunication company will provide strong momentum to Wow’s global expansion plans.”

“We are very excited about our strategic partnership with Wow and the opportunity to work with them in realizing their strategy of becoming a best in class international producer of kids and youth content,” said Randy Lennox, President, Bell Media. “As part of our partnership, Bell Media will leverage Wow’s programming for use across all of our platforms including linear television, CraveTV, and SnackableTV.”

The Transaction will be structured as an asset purchase pursuant to which Wow will directly or indirectly acquire the Canadian Radio-television and Telecommunications (“CRTC“) broadcasting license relating to the Category B specialty service from Bell Media pursuant to an asset purchase agreement to be entered into by Wow and Bell Media in respect of the Transaction (the “Asset Purchase Agreement“).

Pursuant to the Term Sheet, the parties have agreed that, as consideration for the acquisition of the CRTC broadcasting license relating to the Category B specialty service from Bell Media, Wow will issue an aggregate of 3,433,446 common voting shares in the capital of Wow to Bell Media at a deemed price of $2.00 per share for an aggregate acquisition price of $6,866,892 (representing approximately 12% of the Corporation’s issued share capital, after giving effect to the issuance).

In addition, the Term Sheet provides that concurrently with the closing of the Transaction, Wow and Bell Media will enter into a series of ancillary agreements establishing an ongoing strategic partnership between Wow and Bell Media (the “Ancillary Agreements“). These Ancillary Agreements relate to, among other things, the ongoing carriage of a Wow branded channel to replace the current branding of the Category B specialty service on Bell TV and related platforms, transitional services whereby Bell Media will provide various operational, transmission, studio and technology services to Wow, the supply of children’s and other programming controlled by Wow for use by Bell Media on CraveTV and Snackable TV, and have agreed to collaborate and to jointly develop and produce content for the development and production of future programming. Further, subject to the closing of the Transaction, Wow will enter into an investor rights agreement pursuant to which Bell Media shall be granted following the closing of the Transaction: (i) the right to nominate one individual to the board of directors of Wow at closing of the Transaction and at each annual meeting of Wow’s shareholders and (ii) subject to customary exceptions, a pre-emptive right to participate in any future offerings of Wow’s securities on a pro-rata basis.

This Transaction constitutes an arm’s length Reviewable Transaction under TSXV Policy 5.3 – Acquisitions and Dispositions of Non-Cash Assets and is subject to the approval of the TSX Venture Exchange. In addition, completion of the Transaction will be subject to the entering into of the Asset Purchase Agreement and customary terms and conditions for a transaction of this nature, including satisfactory completion of due diligence, receipt of regulatory approvals, including CRTC approval, and the execution of the Asset Purchase Agreement and the Ancillary Agreements on or before August 7, 2017.

About Wow Unlimited Media Inc.

Wow Unlimited Media Inc., (formerly Rainmaker Entertainment Inc.), is creating a leading next-generation kids and youth animation business by focusing on digital platforms and content. Wow’s key assets include: the world’s No. 1 digital animation network, Frederator Networks, which consists of an animation production company Frederator Studios, as well as VOD channels on digital platforms; the world’s first Hispanic animation network, Atomo Network, a joint venture with Anima Estudios; and one of Canada’s largest, multifaceted animation production studios, Rainmaker Entertainment, which consists of Mainframe Studios that produces CGI animated television series, and Rainmaker Studios that produces long-form animated features.

About Bell Media

Bell Media creates content and builds brands that entertain, inform, engage, and inspire audiences through the platforms of their choice. Bell Media is Canada’s leading content creation company with premier assets in television, radio, out-of-home advertising, and digital media. Bell Media owns 30 local television stations led by CTV, Canada’s highest-rated television network; 30 specialty channels, including TSN and RDS, and four pay TV services, including The Movie Network and Super Écran. Bell Media is also Canada’s largest radio broadcaster, with 215 music channels including 105 licensed radio stations in 54 markets across the country, all part of the iHeartRadio brand and streaming service. Bell Media owns Astral Out of Home with a network of more than 30,000 advertising faces in British Columbia, Alberta, Ontario, Québec, and Nova Scotia. Bell Media also operates more than 200 websites; delivers TV Everywhere with its CraveTV and GO video streaming services; operates multi-channel network Much Digital Studios; produces live theatrical shows via its partnership with Iconic Entertainment Studios; and owns Dome Productions Inc., a multi-platform production company. Bell Media is part of BCE Inc. (TSX: BCE) (NYSE: BCE), Canada’s largest communications company. For more on Bell Media, please visit www.bellmedia.ca.

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