Mr. Tamir Poleg reports

THE REAL BROKERAGE INC. ANNOUNCES ACQUISITION OF EXPETITLE, INC.

The Real Brokerage Inc. has completed the acquisition of 100 per cent of the issued and outstanding equity interests of Expetitle Inc. pursuant to a stock purchase agreement dated Jan. 20, 2022, creating an enhanced technology-driven experience from search to close for realtors and their customers.

Expetitle has developed technology that simplifies the paper-intensive and time-intensive title and e-escrow process, reducing errors and saving time. Agents can navigate the entire closing experience in a few clicks using Expetitle's mobile app.

"We are so excited to be joining Real. Their mission of bringing more technology to the home purchase experience aligns perfectly with our focus on bringing technology to the closing," said Sean Daly, Expetitle's founder and chief executive officer. "Together, Real and Expetitle can help the real estate industry for the benefit of everyone."

"I am excited to welcome Sean and the Expetitle team to the Real family. Expetitle's innovative approach to title and closing is synergetic with Real's mission to improve both the agent and consumer experience in the real estate industry," said Real's founder and chief executive officer, Tamir Poleg. "Joining forces will allow us to expedite our efforts towards creating a more convenient, transparent and faster home buying experience for our agents' clients."

Transaction details

The aggregate purchase price for 100 per cent of the issued and outstanding equity interests of Expetitle was for aggregate cash consideration $8,232,000 (U.S.), with $7,432,000 (U.S.) payable in cash at the closing of the transaction and $800,000 (U.S.), subject to escrow, that will be released after 12 months upon the satisfaction or waiver of certain terms and conditions.

In connection with the transaction, Real also granted an aggregate of 700,000 incentive stock options and an aggregate of 1.1 million restricted share units (RSUs) to members of the Expetitle team pursuant to Real's amended and restated stock option plan and restricted share unit plan. The options will vest quarterly over three years and are exercisable for a period of three years at $3.60 per share. The RSUs will vest quarterly over three years.

About The Real Brokerage Inc.

Real is a technology-powered real estate brokerage operating in 40 states of the United States, the District of Columbia and Canada. Real is building the future, together with more than 3,700 agents and their clients. Real creates financial opportunities for agents through better commission splits, best-in-class technology, revenue sharing and equity incentives.

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