The Real Brokerage Inc. to Acquire LemonBrew Lending

The Real Brokerage Inc. (“Real” or the “Company”) (NASDAQ: REAX) (TSX: REAX), an international, technology-powered real estate brokerage, today announced that it signed an agreement to acquire LemonBrew Lending Corp. (“LemonBrew Lending”). The acquisition marks the next pivotal step in executing Real’s strategy of developing a seamless end-to-end home buying experience.

LemonBrew Lending is a tech-enabled home loan platform, licensed to provide a full suite of mortgage services across 20 states in the U.S. including Texas, California, and Florida. The company currently operates as a mortgage brokerage, serving as an intermediary between borrowers and lenders. Additionally, LemonBrew Lending is licensed as a lender in certain states, positioning Real with the option to expand its mortgage platform as long-term strategic needs for the business evolve. As part of the acquisition, Chief Executive Officer of LemonBrew Lending, Samir Dedhia, along with 25 other employees will be joining the team at Real.

"We are excited to be joining forces with The Real Brokerage. Real’s technological vision for the future of integrated home buying is what drew us to the platform,” said Dedhia. “This industry is ripe for disruption, and together we can make a huge impact.”

“I am excited to welcome Samir and the team to Real. LemonBrew Lending will play a meaningful role in achieving our vision to reimagine what home buying can be,” said Chairman and Chief Executive Officer, Tamir Poleg. “With LemonBrew Lending’s current mortgage capabilities and future lending potential, we can now layer in another key building block to our consumer-facing strategy and take a significant stride towards developing a frictionless home buying experience.”

Transaction Details

Pursuant to the terms of a share purchase agreement dated September 23, 2022 between Real, LemonBrew Lending and LemonBrew Technologies Corp. (the “Seller”), the Company will acquire 100% of the issued and outstanding equity interests of LemonBrew Lending from the Seller for an aggregate purchase price of $1,250,000 (the “Acquisition”). The purchase price will be satisfied by (i) cash in the amount of $800,000 and (ii) the issuance of such number of common shares of Real (the “Consideration Shares”) equal to the product of $450,000 divided by the 5-day volume weighted average trading price of Real’s common shares on the NASDAQ immediately prior to the closing of the Acquisition. All dollar figures shown herein are presented in USD.