– Plans to relaunch Language Pal with innovative language learning features
Hello Pal International Inc., a provider of rapidly growing international live-streaming, language learning and social-crypto platform, is pleased to announce that it has signed a Cooperation Agreement with Little Pal Asia Limited (“LPA“) where the Company will be licensed, on a non-exclusive worldwide basis, to freely use LPA’s innovative “Infinity Language” language learning system throughout the Company’s product and service offerings, and in particular, in its Language Pal app.
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The Infinity Language learning system has its origins in successful early childhood education literacy software since 2008, and LPA has been funded by third party investors to adapt the learning system to the language learning market for children.
Under the Cooperation Agreement, LPA will adapt the learning system in the adult market for Hello Pal’s Language Pal. Accordingly, Hello Pal will enjoy exclusive use of the learning system in the adult language learning market, and will continue to enjoy new features and functionalities which are added to the learning system by LPA over time.
As part of the terms of the agreement, the Company has taken a 15% equity interest in LPA for an investment amount of CAD 300,000, which will be mainly used for the further development of the Infinity Language learning system and adaptation for use in Language Pal. Other than this initial investment, Hello Pal will not be required to pay any other amounts to LPA for the use of the Infinity Language learning system.
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“I am thrilled that Hello Pal is now able to make a significant push into the adult language learning market,” said Mr. Wong, Chairman and CEO of the Company. “As part of our overall plan to diversify our revenue sources into different yet related markets, this cooperation and investment will significantly allow us to relaunch Language Pal with the unique features it will need to be competitive in the language learning market.”
As the Company’s CEO, KL Wong, is also a substantial shareholder of LPA, the investment constitutes a “related party transaction” within the meaning of Multilateral Instrument 61–101 –Protection of Minority Security Holders in Special Transactions (“MI 61–101”). The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61–101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61–101 in respect of related party participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related party, exceeded 25% of the Company’s market capitalization.
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