Mr. Justin Rasekh reports

FUNDAMENTAL SIGNS LETTER OF INTENT TO ACQUIRE FORO TECHNOLOGIES

Fundamental Applications Corp. has signed a non-binding letter of intent with Foro Technologies Inc. Foro is the owner of the intellectual property and rights for two organically built applications, with the primary one being Truth, an anonymity app that was a leader when the space first emerged in late 2013.

Truth was quickly recognized by the media and regarded as a market leader for its spontaneity, clean development and rapid growth. Truth was voted into the top 100 social messaging apps in the iTunes Store for 2014, keeping company with Snapchat and What's App. With in excess of 130,000 users and many more downloads, the company's management will look to take the best of its applications, Serum and now Truth, to create Truth version 2.0.

Unlike the Twitter-esque broadcasting model of recent anonymous apps, Truth is about messaging with people whom you actually know and care about: the people who are in your address book. The result is a powerful 1-on-1 communication platform, which is far more engaging and meaningful than anything the company has seen out there.

"This acquisition will take Fundamental to the next level overnight. Not only are we picking up world-class intellectual property but inheriting some top talent within the sector. As Fundamental moves into the acquisition phase of its business plan, we could not be happier to have a brand as well known as Truth in our portfolio. Rounding out the senior management, we are very happy to have Mr. Saheli on our board of advisers to help in the growth of Truth, and any other app we have or will be acquiring," said Justin Rasekh, chief executive officer of Fundamental Applications.

The second application that's been developed by Foro is called Foro. University and college students often have items that they no longer need but which other students can use. These items include bikes, furniture, textbooks and electronics, for example. Foro is an iPhone app that allows students to list out items they no longer need into the app in less than 10 seconds and then to connect with other students at the same school who have the app. Foro provides a great buying and selling experience where students know who they're dealing with, which school they attend and how many mutual Facebook friends they have.

The LOI, which outlines the general terms and conditions on which Fundamental will acquire 100 per cent of the issued shares in the capital of Foro, was negotiated at arm's length and is effective as of Jan. 18, 2015, and is expected to be superseded by a definitive agreement to be signed by the parties.

We seek Safe Harbor.