Snipp Interactive Announces Closing of First Tranche of Private Placement

WASHINGTON, DC--(Marketwired - May 19, 2017) - Snipp Interactive Inc. ("Snipp" or the "Company") (OTCQX:SNIPF)(TSX VENTURE:SPN), a global provider of digital marketing promotions, rebates and loyalty solutions, is pleased to announce that the Company has completed the first tranche (the "First Tranche") of a non-brokered private placement (the "Financing"), details of which can be found in the press release dated May 5, 2017. The First Tranche is comprised of 14,165,000 common shares (the "Shares") at a price of CAD $0.10 per Share for additional gross proceeds of CAD $1,416,500.

As part of the First Tranche, Lark Investments Inc. ("Lark"), an insider and the Company's largest shareholder, acquired 4,000,000 Shares, representing approximately 2.73% of Snipp's issued and outstanding common shares. Following the acquisition, Lark has beneficial ownership and control over 27,152,060 common shares of Snipp, representing approximately 18.51% of Snipp's issued and outstanding common shares, after giving effect to the aggregate Shares issued pursuant to the closing of the First Tranche.

Further, Lark has also subscribed for an additional 21,000,000 Shares, subject to Snipp obtaining disinterested shareholder approval for such issuance. If such additional Shares are issued, Lark would have beneficial ownership and control of an aggregate of 48,152,060 common shares of Snipp representing approximately 28.71% of Snipp's issued and outstanding common shares, assuming that no other additional common shares have been issued.

In addition, other insiders and directors of the Company have acquired an aggregate of 2,765,000 Shares for cumulative gross proceeds of CAD$276,500.

The net proceeds raised through the Financing will be used for sales & marketing and general working capital purposes.

Closing of additional tranches may be subject to receipt of shareholder and regulatory approvals, including acceptance by the TSX Venture Exchange. The four-month hold period for all Shares issued under the First Tranche will expire on September 20, 2017 in accordance with Canadian securities laws.

Existing shareholders are welcome to call or email the Company if they are interested in subscribing for any of the remaining $983,500 in shares under the Financing. The Company is making this offer available in good faith to existing shareholders who have not yet approached Snipp, but would like to participate in the Financing.