Last Friday's Announcement

Thrre are few very positives in last Friday's Announcement,

1. Revenue on Sunfly JV is to come shortly and potential is huge.
Nick referred to Ooyala which was acquired by Telstra for US$331m in 2014.

Also, signed partnership agreement with Divan.TV

1. • Partnership agreement brings immediate revenue
   • Says TV2U and divan tv will share a 50/50 net profit on all net revenue
   • Deal is expected to generate over $25 million in revenue in first two years
     of operation if key performance indicators are achieved
     

2. More deals to come, one with Australian Tele company.

3. Loyalty opinion issue to be lodged in two weeks.

All are very good for a $32m small cap, IMO.


1. Name Change

The App will be rebranded “Karaoke2U” from “Sunfly2U” to avoid confusion as an unrelated US company is already using the Sunfly name for its app.

“The earnings potential from Karaoke2U should not be underestimated as it requires next to no capital investment from us to operate and scale up the service,” said TV2U’s chief executive officer, Nick Fitzgerald.

“What’s more, our one-of-kind viewership analytics capabilities give us tremendous upside potential as such data has become instrumental to the success of Netflix and Amazon. You only need to look at Telstra’s US$331 million acquisition of video streaming and analytics company Ooyala to get a sense of where TV2U could be headed.”

2. OTHER AGREEMENTS

The Company is in advanced discussions with an Australian-own telecommunication services provider on a joint ven- ture arrangement, consistent with the Company’s existing roll out strategy. The joint arrangement is being consid- ered by the Company and is subject to board approval. The structure of the agreement will be following the low up- front capex / high margin service delivery strategy of the company, which was implemented post the companies ASX listing. The Company will update the market on this should a conclusive binding agreement be reached.

The Company is also in discussions with various parties on a number of other agreements, however, given the stage of negotiations, the Company does not consider any of these to be material at the current time.

3. LOYALTY OPTION ENTITLEMENT ISSUE

As previously announced, the Company intends to make a pro rata non-renounceable offer on the basis of one New Option for every four Shares held under a new Prospectus at an issue price of $0.0001 cents per new option to raise approximately A$26,041 before expenses. The New Options will have an exercise price of $0.04 cents per option and an expiry date of 30th March 2019.

The Prospectus for the Option Entitlement Issue is anticipated to be lodged by the end of the month.