Market Overview

Basic Fun! Receives Funding from Falcon Investment Advisors

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Toy Company Pursuing Significant Growth Through Acquisitions, Aiming
to Become Global Industry Leader

Basic
Fun!
, the Florida-based toy and novelties company, announced that it
has received a significant equity investment from Falcon Investment
Advisors, LLC, the Boston-based investment fund.

Basic Fun!'s strategic goal is to be the next great American toy story
by growing organically, as well as by acquiring and consolidating
smaller toy companies in the wake of the ever-changing retail
marketplace for toys in North America and globally. Following the merger
of The Bridge Direct and Tech 4 Kids, which formed the new Basic Fun!,
the company's progression has continued with the acquisition of two
STEM-focused companies, Uncle Milton and Geoworld in 2017, as well as
the acquisition of construction toy icon K'NEX in early 2018.

The company believes the investment from Falcon is a clear indication of
the confidence the financial community has in Basic Fun!'s business
model and its management team as the company scales up with the goal of
emerging into the top 10 of global toy companies over the next several
years.

"We couldn't be more pleased than to have the support of the Falcon
team," said Jay Foreman, CEO of Basic Fun! "We have gotten to know
Falcon over the past year and believe the team's knowledge and expertise
will help accelerate and finance our growth and acquisition plans."

The company also has the support of The Royal Bank of Canada, which put
in place the financing package to fund the merger with Tech 4 Kids and
the acquisitions of Uncle Milton and Geoworld, and Cathay Capital
Private Equity, which joined the Basic Fun! investor group earlier this
year through its prior ownership of K'NEX.

"While our private equity partners hold minority stakes in our business,
they along with RBC will play a major role in our future growth," said
Foreman. BMO Capital Markets originated the investment from Falcon
Investment Advisors, LLC and served as the exclusive financial advisor
to Basic Fun! on the transaction.

"Together with our financial partners, the Company is poised for dynamic
growth and is extremely well positioned to navigate through, grow and
thrive in today's evolving retail landscape," said John MacDonald, the
company's Chairman.

About Basic Fun!

Basic Fun! is a developer of innovative and fun children's entertainment
products. The company was created as a result of an organized roll-up
strategy, of several smaller toy companies including: The Bridge Direct,
Tech 4 Kids, K'NEX, Uncle Milton and Good Stuff. The company's products
are sold through a well-established network of retailers and
distributors around the globe and include the following product lines:
CakePop Cuties, Cutetitos, Classic My Little Pony, Mash'ems, Uncle
Milton's Star Wars Science activities and Original Ant Farm, C3
Collector Construction, Arcade Classics Electronic Games including
Pac-Man and Frogger, Pokémon Trainer Guess, Fisher-Price Classics®,
Strawberry Shortcake, Lite-Brite® and many more. For more
information, visit www.BasicFun.com.

About Falcon Investment Advisors, LLC

With offices in Boston and New York, Falcon provides innovative capital
solutions in amounts of $25 million to $75 million to middle market
companies. Since its founding in 2000, Falcon has invested in over 90
companies in a broad range of industries to support acquisitions,
recapitalizations, buyouts and organic growth. Falcon has significant
capital available for investment, through both its credit opportunities
and structured equity funds. To learn more about Falcon, please visit www.falconinvestments.com.

About Cathay Capital

Cathay Capital is a global private equity firm specialized in the field
of cross-border investment, committed to supporting the international
expansion of middle-market companies in North America, China and Europe.
With over 70 professionals and more than $2.0 billion in assets under
management, Cathay Capital invests in middle-market companies in the
consumer goods and services, healthcare, business services and
technology industries. To learn more about Cathay Capital, please visit www.cathay.fr.

About RBC

Royal Bank of Canada is a global financial institution with a
purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 84,000+ employees who bring our
vision, values and strategy to life so we can help our clients thrive
and communities prosper. As Canada's biggest bank, and one of the
largest in the world based on market capitalization, we have a
diversified business model with a focus on innovation and providing
exceptional experiences to our 16 million clients in Canada, the U.S.
and 34 other countries. Learn more at rbc.com.

About BMO Capital Markets

BMO Capital Markets is a leading, full-service North American-based
financial services provider, with approximately 2,500 professionals in
30 locations around the world, including 16 offices in North America,
offering corporate, institutional and government client's access to a
complete range of investment and corporate banking products and
services. BMO Capital Markets is a member of BMO Financial Group (NYSE, TSX: BMO), one of the largest diversified financial services providers
in North America with US$589 billion total assets and over 45,000
employees as at July 31, 2018.

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