Mobile game publisher PopReach Corp. closed a C$5 million strategic investment by New Insight Incentive Plan Co., a subsidiary of eWTP Tech Innovation Fund LP, subject to final acceptance by TSX Venture Exchange.

Under the deal, eWTP will make a C$5 million investment in PopReach by subscribing for up to 6,944,444 of its common shares at 72 Canadian cents apiece in a non-brokered private placement.

Under the rules of the TSX Venture Exchange, the full C$5 million investment results in eWTP holding over 10.0% of PopReach's issued and outstanding capital, deeming eWTP an "insider" for the purposes of the rules of the Exchange. As a result, the Exchange rules require that additional background checks and clearance process for insiders be conducted on eWTP.

The process is expected to take several weeks.

PopReach has received C$4.2 million of gross proceeds and issued 5,798,611 common shares to eWTP at a price of 72 Canadian cents per common share, resulting in eWTP holding approximately 9.99% of issued share capital of the company.

The remaining C$825,000 will be released to PopReach and an additional 1,145,833 common shares will be issued to eWTP upon completion of the Exchange's customary clearance process.

PopReach intends to use the net proceeds to fund acquisitions and for other general corporate purposes. Subject to the completion of the private placement, the company will pay a finder's fee equal to 4.0% of the gross proceeds to DDM Game Studio Representation LLC.

The eWTP Tech Innovation Fund is the global investment arm of Alibaba Group Holding Ltd.