Tokens.com Announces Sale of Metaverse Group and Hulk Labs to StoryFire

Tokens.com Corp. (Cboe Canada: COIN)(Frankfurt Stock Exchange: 76M) (OTCQB US: SMURF) (“Tokens.com” or the “Company”), a web3 technology company that owns an inventory of cryptocurrencies, is pleased to announce that it has entered into a definitive agreement to sell the assets of Metaverse Group and Hulk Labs to StoryFire, Inc. (“StoryFire”). The transaction is scheduled to close on March 1st, 2024.

Consideration to Tokens.com for the disposition consists of a 15.3% equity interest in StoryFire, valued at US$3.5 million, plus US$500,000 in Blaze tokens, the in-app currency native to StoryFire. In addition, Tokens.com will be granted a board seat on the StoryFire board. Following the completion of the transaction, Tokens.com will no longer have an active business in metaverse or web3 gaming, except through its ownership in StoryFire.

StoryFire is a private online social entertainment and gaming platform that empowers users to create and engage with immersive narratives. With a rapidly growing user base of 2.5 million, StoryFire offers a vibrant and creative community for storytellers and enthusiasts. StoryFire users create social posts akin to Twitter, gain a following and earn an in-app currency known as Blaze. StoryFire is a privately owned entity.

"This transaction provides Tokens.com shareholders with several benefits, including the continued buildout of Metaverse Group by a strategic acquirer. StoryFire is a successful social media brand with over 2 million users and the capital to expand the growth of these businesses,” said Andrew Kiguel, CEO of Tokens.com. “Tokens.com retains a significant amount of upside through its equity ownership in StoryFire, while no longer having to cover the overhead required to manage these businesses. Management expects this and other cost cutting measures associated with the transaction to result in savings to Tokens.com of approximately CAD$1.5M annually. The resulting Tokens.com business will own 15.3% of StoryFire, approximately CAD$3.7M in cash, approximately CAD$15.0M in cryptocurrency tokens, as well as a valuable portfolio of domain names that are currently for sale." added Kiguel.

The strategic vision for combining these assets is to leverage Metaverse Group’s capabilities to build content for use by StoryFire's 2.5M users, and expand on the metaverse experiences that Metaverse Group hosts, such as the Metaverse Fashion Week. By virtue of having a larger captive audience and distribution network that is growing by over 100% year over year, Metaverse Group’s 3D design and build capabilities will be able to attract a broader base of clients, and create immersive experiences for StoryFire creators and enterprises. Helix, the underlying metaverse virtual commerce platform provides a powerful engine for StoryFire creators to sell goods and services in the metaverse.