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Vertiqal Studios and Viral Nation Collaborate to Strengthen Social Media and Content Creation in 2025

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Vertiqal Studios (VERTF) has announced a strategic collaboration with Viral Nation, marking significant expansion in the social media landscape. The company acquired four Instagram channels from Viral Nation for US$150,000, adding 1.77M followers to its existing 52M-person audience. The deal includes US$50,000 in cash and US$100,000 in shares (5,737,200 shares at $0.025 each).

The collaboration features a revenue-sharing model where Vertiqal receives 70% and Viral Nation 30% of media revenue. The partnership includes licensing of Viral Nation's technology solutions and plans for co-producing original content. This strengthens Vertiqal's position as North America's largest owner of gaming and lifestyle social media channels, with over 130 channels across Snapchat, Instagram, and TikTok.

Vertiqal Studios (VERTF) ha annunciato una collaborazione strategica con Viral Nation, segnando una significativa espansione nel panorama dei social media. L'azienda ha acquisito quattro canali Instagram da Viral Nation per 150.000 dollari, aggiungendo 1,77 milioni di follower al suo pubblico esistente di 52 milioni di persone. L'accordo include 50.000 dollari in contante e 100.000 dollari in azioni (5.737.200 azioni a 0,025 dollari ciascuna).

La collaborazione prevede un modello di condivisione dei ricavi in cui Vertiqal riceve il 70% e Viral Nation il 30% dei ricavi pubblicitari. La partnership include la licenza delle soluzioni tecnologiche di Viral Nation e piani per co-produrre contenuti originali. Questo rafforza la posizione di Vertiqal come il maggiore proprietario di canali social media dedicati al gaming e allo stile di vita in Nord America, con oltre 130 canali su Snapchat, Instagram e TikTok.

Vertiqal Studios (VERTF) ha anunciado una colaboración estratégica con Viral Nation, marcando una expansión significativa en el ámbito de las redes sociales. La compañía adquirió cuatro canales de Instagram de Viral Nation por 150,000 dólares, añadiendo 1.77 millones de seguidores a su audiencia existente de 52 millones de personas. El acuerdo incluye 50,000 dólares en efectivo y 100,000 dólares en acciones (5,737,200 acciones a 0.025 dólares cada una).

La colaboración presenta un modelo de reparto de ingresos donde Vertiqal recibe el 70% y Viral Nation el 30% de los ingresos publicitarios. La asociación incluye la concesión de licencias de las soluciones tecnológicas de Viral Nation y planes para co-producir contenido original. Esto fortalece la posición de Vertiqal como el mayor propietario de canales de redes sociales dedicados a los juegos y al estilo de vida en América del Norte, con más de 130 canales en Snapchat, Instagram y TikTok.

Vertiqal Studios (VERTF)는 Viral Nation과의 전략적 협업을 발표하며 소셜 미디어 분야에서의 중요한 확장을 알렸습니다. 이 회사는 Viral Nation에서 150,000달러에 인스타그램 채널 4개를 인수하여 기존 5,200만 명의 청중에 177만 명의 팔로워를 추가했습니다. 거래에는 50,000달러의 현금과 100,000달러의 주식(각각 0.025달러인 5,737,200주)이 포함됩니다.

이 협업에는 Vertiqal이 미디어 수익의 70%를, Viral Nation이 30%를 받는 수익 공유 모델이 포함되어 있습니다. 이 파트너십은 Viral Nation의 기술 솔루션 라이선스와 원본 콘텐츠 공동 제작 계획을 포함합니다. 이는 Vertiqal을 북미 최대 게임 및 라이프스타일 소셜 미디어 채널 소유자로 자리매김하게 하며, Snapchat, Instagram, TikTok 등에서 130개 이상의 채널을 운영하고 있습니다.

Vertiqal Studios (VERTF) a annoncé une collaboration stratégique avec Viral Nation, marquant une expansion significative dans le paysage des médias sociaux. La société a acquis quatre chaînes Instagram de Viral Nation pour 150 000 USD, ajoutant 1,77 million de followers à son audience existante de 52 millions de personnes. L'accord comprend 50 000 USD en espèces et 100 000 USD en actions (5 737 200 actions à 0,025 USD chacune).

La collaboration comprend un modèle de partage des revenus où Vertiqal reçoit 70 % et Viral Nation 30 % des revenus publicitaires. Le partenariat inclut la licence des solutions technologiques de Viral Nation et des projets de co-production de contenu original. Cela renforce la position de Vertiqal en tant que plus grand propriétaire de chaînes de médias sociaux consacrées aux jeux et au style de vie en Amérique du Nord, avec plus de 130 chaînes sur Snapchat, Instagram et TikTok.

Vertiqal Studios (VERTF) hat eine strategische Zusammenarbeit mit Viral Nation bekannt gegeben, die eine bedeutende Expansion im Bereich der sozialen Medien darstellt. Das Unternehmen erwarb vier Instagram-Kanäle von Viral Nation für 150.000 US-Dollar und fügte seiner bestehenden Zielgruppe von 52 Millionen Personen 1,77 Millionen Follower hinzu. Der Deal umfasst 50.000 US-Dollar in Bargeld und 100.000 US-Dollar in Aktien (5.737.200 Aktien zu je 0,025 US-Dollar).

Die Zusammenarbeit beinhaltet ein Einnahmenbeteiligungsmodell, bei dem Vertiqal 70% und Viral Nation 30% der Mediainvestitionen erhält. Die Partnerschaft umfasst die Lizenzierung von Viral Nations Technologielösungen und Pläne zur Mitproduktion von Originalinhalten. Dies stärkt Vertiqals Position als größter Eigentümer von Gaming- und Lifestyle-Social-Media-Kanälen in Nordamerika mit über 130 Kanälen auf Snapchat, Instagram und TikTok.

Positive
  • Acquisition of 4 Instagram channels adding 1.77M followers to existing 52M audience
  • 70/30 revenue-sharing agreement favoring Vertiqal Studios
  • Access to Viral Nation's technology solutions for improved analytics and campaign optimization
  • Strategic expansion of content distribution network across multiple platforms
Negative
  • Share dilution through issuance of 5,737,200 new common shares
  • Significant cash outlay of US$50,000 for channel acquisition

Toronto, Ontario--(Newsfile Corp. - December 19, 2024) - Vertiqal Studios Corp. (TSX: VRTS) (OTCQB: VERTF) (FSE: 9PY0) (the "Company" or "Vertiqal Studios") - Vertiqal Studios, North America's largest owner of gaming and lifestyle social media channels, is pleased to announce a collaboration with Viral Nation Inc. ("Viral Nation"), a global leader in influencer marketing and technology solutions. The collaboration is set to amplify Vertiqal Studios' growth and further bolster its offerings through strategic acquisitions, revenue-sharing arrangements, and co-production initiatives.

Vertiqal Studios Acquires High-Performing Instagram Channels

Vertiqal Studios and Viral Nation have entered into an asset purchase agreement (the "APA") dated December 19, 2024 pursuant to which Vertiqal Studios has acquired four high-performing social channels from Viral Nation, adding 1,773,000 followers to Vertiqal's 52,000,000-person audience, 73% of which live in the United States. These channels complement Vertiqal Studios' already robust portfolio of 130+ social media channels across Snapchat, Instagram, and TikTok. This acquisition further cements Vertiqal Studios' status as one of the most dominant strategy, creative, and distribution entities in the digital media landscape, with the addition of these new channels being accretive to the overall value of Vertiqal's content distribution network.

Under the APA, Vertiqal Studios acquired ownership of the Instagram channels and all ancillary assets and contracts in exchange for an aggregate consideration of US$150,000 payable as follows: (i) US$50,000 paid in cash on the closing of the acquisition; and (ii) US$100,00 paid through the issuance of 5,737,200 common shares in the capital of the Company at a deemed price of $0.025 per common share at an exchange rate of US$1 ~ C$1.4343.

All securities issued in connection with the APA are subject to a four-month plus one day hold period from the date of issuance and resale rules of applicable securities legislation.

The APA remains subject to final approval from the Toronto Stock Exchange.

Revenue-Sharing Model to Maximize Monetization

The APA also establishes a co-selling arrangement featuring a revenue-sharing model, where Vertiqal Studios will receive 70% of the revenue generated, and Viral Nation will receive 30% for media driven by Viral Nation through Vertiqal Studios' owned and operated channel network. This innovative revenue-sharing strategy will enable both companies to streamline media sales operations while maximizing profitability and market reach. By combining their expertise and resources, this collaboration enhances value for both brands and advertisers.

Leveraging Viral Nation's Cutting-Edge Technology

Viral Nation has agreed to provide Vertiqal Studios a license to its comprehensive suite of technology solutions, aiding them in delivering enhanced media sales strategies and results for their clients. With access to these tools, Vertiqal Studios can implement smarter analytics, improved campaign optimization, and connect more effectively with audiences. This partnership strengthens Vertiqal Studios' position as a leader in creative and innovative marketing solutions.

Co-Producing Original Content

The two entities will also co-produce original content for distribution across their respective channels and platforms. By combining their creative expertise and leveraging their expansive networks of both channels and creators, Vertiqal Studios and Viral Nation aim to deliver impactful and engaging content that resonates deeply with Gen Z and Millennial audiences. This collaboration is expected to set new benchmarks for quality and innovation in digital storytelling, further broadening both companies' influence in the content creation space.

A Key Milestone for Vertiqal Studios

This collaboration represents a pivotal moment in Vertiqal Studios' growth trajectory. By acquiring these Instagram channels, integrating advanced technology, and collaborating on original content, Vertiqal Studios is positioning itself as an even more influential force in the social media landscape, with diversity across platforms. The collaboration with Viral Nation solidifies Vertiqal Studios' status as one of North America's largest owners of gaming and lifestyle social media channels. This strategic alliance underscores Vertiqal Studios' commitment to continuous growth and innovation, further expanding its influence in the ever-evolving digital media ecosystem.

"This collaboration with Viral Nation is a major milestone in Vertiqal Studios' journey to redefine how brands engage with audiences in the digital age," said Max Desmarais, President of Vertiqal Studios. "I've always had immense admiration for Joe Gagliese and Mat Micheli at Viral Nation and the incredible company they've built. Their vision and leadership have set a benchmark in the influencer marketing and technology space, and this partnership is a testament to the shared values and innovative spirit that unite our two organizations. By acquiring these Instagram channels, integrating Viral Nation's technology, and collaborating on original content, we're positioned to set new standards for excellence in social media marketing."

Joe Gagliese, Co-CEO of Viral Nation, added, "We're thrilled to partner with Vertiqal Studios to drive innovation and growth in the social media ecosystem. This collaboration brings together two leaders in the digital space to create opportunities for brands and creators alike."

This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States and may not be offered or sold within the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

About Vertiqal Studios

Vertiqal Studios, owners of one of North America's largest gaming and lifestyle networks on social media, is a digital strategy, creative, and distribution holding company. The Company specializes in the creation and distribution of viral videos for brands and advertisers to create always-on digital strategies that live authentically in Gen Z and Millennial culture. Vertiqal Studios partners with leading brands to develop strategic solutions, creative ideation, and content production, while also providing distribution and amplification through its owned & operated channels - all delivered with boutique, white-glove service. Its expertise lies in managing over 130 channels across TikTok, Instagram, and Snapchat, while producing over 100+ pieces of content a day for a growing audience of 52 million-plus followers. By having such robust ownership of culture and communities on social, Vertiqal Studios provides innovative advertising solutions for brands such as RBC, Samsung, White Castle, Coca-Cola, ESPN, Chili's, and more. For more information and to join our email subscriber list for direct press releases and newsletters, visit https://vertiqalstudios.com/.

About Viral Nation

Viral Nation is a global leader in social media innovation, uniting powerful marketing services, proprietary technology, and creator representation. Founded in 2014, Viral Nation evolved to fuel cultural resonance and predictable growth for brands through a social-first approach. The company's belief that creators and social communities are the new media of today and tomorrow steers world-class services, which include influencer marketing, community management, social content production, social strategy, and a talent representation agency. Viral Nation's creator intelligence technology, CreatorOS, and AI-powered brand safety solution, Secure, allow the company to maximize creator partnerships while safeguarding brand reputation. Viral Nation powers global growth for brands like e.l.f. Cosmetics, Audible, A24, The Coca-Cola Company, MGM Resorts International, Microsoft, Meta, Tencent, Vivid Seats, Zillow, and Walmart, redefining how brands engage and thrive in an ever-evolving digital world. For more information, please visit www.viralnation.com and follow Viral Nation on LinkedIn, X, Instagram, YouTube, and TikTok.

For media inquiries, please contact:

Jon Dwyer
Chairman and Chief Executive Officer

+1 (416) 627-8868;
Email: jon@vertiqalstudios.com;
Investor Relations Email: ir@vertiqalstudios.com

Forward-Looking Information

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. The forward-looking statements and information are based on certain key expectations and assumptions made by management of the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release.

The forward-looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234588

FAQ

What is the value of Vertiqal Studios' (VERTF) acquisition of Viral Nation's Instagram channels?

Vertiqal Studios acquired four Instagram channels from Viral Nation for US$150,000, consisting of US$50,000 in cash and US$100,000 in shares (5,737,200 shares at $0.025 each).

How many followers did VERTF gain from the Viral Nation channel acquisition?

The acquisition added 1,773,000 followers to Vertiqal Studios' existing 52,000,000-person audience.

What is the revenue-sharing split between VERTF and Viral Nation?

Under the agreement, Vertiqal Studios receives 70% of the revenue generated, while Viral Nation receives 30% for media driven through Vertiqal Studios' channel network.

How many social media channels does VERTF now own across platforms?

Vertiqal Studios owns over 130 social media channels across Snapchat, Instagram, and TikTok platforms.

What is the lock-up period for VERTF shares issued in the Viral Nation deal?

The shares issued are subject to a four-month plus one day hold period from the date of issuance.

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