Mr. Cong Ly reports

WONDERFI LAUNCHES WONDERFI INTERACTIVE, BRINGING PLAY TO EARN GAMING AND NFTS TO WONDERFI

Wonderfi Technologies Inc. has launched a new division, Wonderfi Interactive Inc., which expands Wonderfi's product offering into play-to-earn gaming and NFTs and will provide a new on-ramp for users into the Wonderfi ecosystem. In connection with the launch, Wonderfi has entered into a binding letter of intent to acquire all of the issued and outstanding shares of Sun Machine Entertainment Inc., an industry leading game development studio and owner of the Go BIG! Franchise, which is currently available on iOS and Android.

Wonderfi Interactive launch

"Gaming provides a universally accessible entry point for crypto and NFTs, and there are over three billion gamers worldwide," commented Cong Ly, chief technology officer of Wonderfi. "Wonderfi is in a position to create unique NFT opportunities through the Go BIG! Franchise and offer players the ability to earn IP-backed NFTs that are usable across the Go BIG! Franchise and the Wonderfi ecosystem."

Wonderfi Interactive's road map will include the integration of NFTs into the Go BIG! Franchise including celebrity NFTs, and the development of new games in 2022 to bring more gamers into the Wonderfi ecosystem.

Sam Bankman-Fried, strategic investor in Wonderfi, has commented on gaming NFTs being "the driving force behind bringing crypto to the mainstream ... I'm pretty bullish on a top-tier gaming publisher looking to introduce crypto into their system," and gaming NFTs could "bring a non-crypto-native audience to crypto for something other than financial investing," added Mr. Bankman-Fried.

Sun Machine, Godzilla vs. Kong and Legendary Entertainment

Sun Machine was founded by Wil Mozell, who previously sold his game development studio BigPark to Microsoft. Mr. Mozell has been building studios and game franchises for over 28 years and while at Microsoft oversaw flagship products Gears of War and Kinect Sports as well as leading interactive sports experiences with NFL, ESPN and UFC on Xbox.

Sun Machine, in partnership with global content leader Legendary Entertainment, released the action-packed mobile video game Go BIG! feat. Godzilla vs. Kong in Q4 2021. During this period and in advance of commercial launch in Q2 2022, the product has already seen over 200,000 installs while in soft launch across the Apple App Store and Google Play Store in North America and select international markets. "With our soft launch user acquisition metrics, our world-class IP partnership with Legendary Entertainment and our 2022 road map, we are very excited about the future of the Go Big! franchise," commented Mr. Mozell.

Go BIG! feat. Godzilla vs. Kong is the first major installation of the Go BIG! Franchise. Created to be "the most fun two minutes of your day," the casual-action "smash, dash and grow" game play of Go BIG! will soon extend to other game genres which the team at Sun Machine will be creating next. With its broadly appealing game play, captivating characters and dynamic world, Go BIG! was designed for seamless collaboration with compelling IP such as Godzilla vs. Kong.

"This is one of the deepest collaborations we have done in a casual mobile game for the film Godzilla vs. Kong, and we couldn't be happier with Sun Machine's portrayal," commented Legendary Entertainment's Sam Rappaport, director of interactive media, at the time of soft launch. "Go BIG! feat. Godzilla vs. Kong is non-stop action and pure fun, bringing a playful element to the iconic Kong and Godzilla Titans not yet seen before. We believe fans of the Monsterverse franchise and even those who haven't yet seen the films will love this game."

Transaction details

The acquisition is valued at $17-million, subject to continuing due diligence, and consideration will be paid in Wonderfi common shares based on a 15-day volume weighted average price of Wonderfi common shares on the trading day immediately preceding the execution of a definitive agreement, with a minimum issuance price of $2.05 per Wonderfi common share and a maximum of $2.85 per share.

The acquisition is subject to the parties negotiating and entering into a definitive agreement to give effect to the acquisition and is expected to close in the second quarter of 2022, subject to Sun Machine shareholder approval, board approvals, the completion of due diligence by Wonderfi, and other acquisition-related closing conditions and regulatory approvals.

Cong Ly, chief technology officer of Wonderfi, previous served as chief technology officer of Sun Machine from March, 2019, to October, 2020. Mr. Ly has no direct or indirect ownership of Sun Machine.

Crypto APIs acquisition

Wonderfi management has decided not to proceed with the previously announced acquisition of Mena Software Ltd. (Crypto APIs).

About Wonderfi Technologies Inc.

Wonderfi is a leading technology company with the mission of creating better access to Defi through the core principles of simplicity and education. Wonderfi has a multipronged business strategy which includes a high-growth consumer finance app which will serve as a trusted gateway to the new financial system, and a digital asset portfolio which consists of leading crypto and Defi assets. Wonderfi's executive team and board of directors have an established record in finance and crypto, with previous experience at Amazon, Shopify, PayPal, Galaxy Digital and Hut 8. Wonderfi's core team of engineers and technologists believe that everyone should have equal access to finance and are aligned in the mission to empower people around the world to access Defi in a simple, smart and secure way.

About Sun Machine Entertainment Inc.

Sun Machine Entertainment is a leading developer of original video games, founded in Vancouver, Canada, by a team of industry leaders responsible for numerous best-selling and award-winning titles. Sun Machine's debut release, Go BIG! feat. Godzilla vs. Kong, is a casual action mobile game that builds on the hugely successful film Godzilla vs. Kong, the latest chapter of Legendary Entertainment's Monsterverse franchise.

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