$6.5 million Institutional Placementand SPP
Animoca Brands successfully raised $6.5 million via Institutional Placement
Placement to be followed by a Share Purchase Plan (SPP) to raise up to a potential $1 million
Placement received considerable support from highly regarded institutions as well as some sophisticated and professional investors
Funding will enable the Company to expand its IP portfolio and revenue enhancing games and digital entertainment opportunities
Hong Kong – 11 April 2016 - Animoca Brands (ASX: AB1, “The Company”) is pleased to announce that Placement offers have been accepted for 32.5 million fully paid ordinary shares, to raise $6.5m, at an issue price of $0.20 per share, representing a 2.4% discount to the last close price on Wednesday 6 April 2016 and 5.6% discount on a 5 day VWAP.
The Placement was oversubscribed, received considerable support from sophisticated and professional investors and well-known institutions whose offers had to be scaled back, representing the strong belief in the Company’s ability to execute its growth initiatives and the positive market sentiment towards the growing mobile gaming and children’s mobile entertainment sectors, which have been growing rapidly around the world.
The new shares are expected to be allotted under the Placement on Thursday 14 April 2016 and will rank equally with existing AB1 ordinary shares.
Share Purchase Plan (SPP)
AB1 is pleased to announce the opportunity for existing shareholders of AB1 to participate in a SPP. Under the SPP, eligible shareholders are invited to invest up to $15,000 per shareholder at $0.20 per share, the same price per share as investors were offered shares under the Placement. No brokerage or transaction costs are payable by shareholders when subscribing for shares under the SPP.
Further information in relation to the SPP, including the SPP terms and conditions, will be outlined in a separate SPP offer document which will be despatched to eligible shareholders shortly.
Use of Proceeds
Funds raised from the Placement and SPP will be used to meet working capital requirements and strategic growth opportunities, including expediting the development of e-books, as well as on-going expansion of the Company’s app portfolio, and for the future acquisition of content and intellectual property to grow the brand portfolio.
Following recent successes, the number of expansion opportunities made available to Animoca continues to increase.
The Company will not seek further shareholder approvals in relation to the proposed share issues in addition to those obtained at its annual general meeting on 8 April 2016. The placement was managed by Bell Potter Securities Limited.
Robby Yung, CEO, Animoca Brands commented:
“This capital raise is a strong representation of the support we’ve received from the market and the belief in our growth strategy and ability to execute. With this funding we’re well positioned to expedite the development of our e-books in partnership with Mattel and continue to increase our app portfolio and user base as we seek further advertising revenue opportunities. We continue to seek out opportunities to acquire brand licenses and technology and with this funding in place we will be able to broaden both our IP portfolio and take advantages of opportunities as they arise.”
About Animoca Brands
Animoca Brands listed on the ASX in January 2015. Animoca Brands publishes globally a broad portfolio of mobile games, including several games based on popular intellectual properties such as Garfield, Thomas & Friends, and Ultraman. Animoca Brand’s games have been downloaded over 190 million times and are growing at 5 to 6 million downloads per month. Animoca Brands is based in Hong Kong. For more information visit www.animocabrands.com.
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