Ourpalm and Animoca Brands sign subscription agreement in relation to $3.1m strategic investment
The share subscription agreement in relation to the strategic investment of A$3.1 million from FingerFun (HK) Ltd., a subsidiary of Ourpalm, China’s leading listed mobile and social web game developer and publisher, has been signed
Investment represents 11.11% of the Company’s expanded share capital
Partnership with Ourpalm expected to expand publishing channels and optimise marketing capabilities, particularly in penetrating the Chinese mobile gaming market
Funds provide Animoca Brands with the ability to increase revenue generation through increased spending on marketing and development of mobile games
Significant opportunity in China, with over 450 million mobile gamers and the Chinese mobile gaming market accounting for 38% of digital games revenue in Asia
Hong Kong – 6 August 2015 – Animoca Brands (ASX: AB1 or the “Company”) today announces that the share subscription agreement in relation to the strategic cash investment by FingerFun (HK) Ltd (“FingerFun”), a subsidiary of Ourpalm Co. Ltd (“Ourpalm”), as announced on 6 July 2015 has been signed. The investment is now unconditional and completion of the investment is expected to occur shortly. Animoca will lodge the appropriate Appendix 3B advising of the issue of the shares when this has occurred.
As previously announced, FingerFun has agreed to invest A$3.1 million in Animoca Brands in consideration for 14,785,714 fully paid ordinary shares. The share subscription agreement has been signed, allowing the transaction to proceed to complete. The investment represents 11.11% of the Company’s expanded share capital at $0.21 per share. The subscription shares have been voluntarily escrowed for a period of twelve months from the date of completion of the investment.
As part of this agreement, Asyla Investments Limited and Datahouse Investments Limited, the two largest shareholders in Animoca Brands, have agreed to extend their voluntary escrow periods to no less than twelve months from the date of completion of the investment.
Ourpalm is China’s leading listed mobile and social webgame developer and publisher, and this strategic investment and partnership is expected to significantly enhance Animoca Brands’ market share and distribution in the Chinese gaming market, which accounts for 38% of revenue in Asia, with over 450 million mobile gamers.
As previously announced on 6 July 2015, Mr Steven Hu, co-CEO of Ourpalm and a high profile corporate executive, was appointed Non-Executive Director of Animoca Brands upon completion of the investment. The Company is pleased to announce that Mr Hu has now taken a position on the Board, bringing with him a wealth of corporate and financial expertise in the technology and Internet sectors.
Mr Robby Yung, CEO, of Animoca Brands commented:
"The Ourpalm investment and strategic partnership opens up further opportunities for successful collaborations, following our first partnership to publish the highly successful Doraemon Gadget Rush earlier this year. Ourpalm’s strong reputation in the Chinese gaming market makes it an ideal partner as we work to accelerate our growth and increase our penetration and revenues in the growing Chinese gaming market."
About Animoca Brands
AAnimoca Brands Corporation Ltd. (ASX: AB1) publishes globally a broad portfolio of mobile games, including several games based on popular intellectual properties such as Garfield, Ultraman, and Doraemon. The company’s games have been downloaded over 140 million times. Animoca Brands is based in Hong Kong. For more information visit www.animocabrands.com.
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Ourpalm was founded in Beijing in 2004 as a government licensed telecommunications and service provider. Strong background in web and mobile content have secured Ourpalm a place as one of China’s leading web and mobile game developers and publishers. In May 2012, Ourpalm made its first public offering on the Shenzhen Stock exchange (Ticker: 300315-CN). The Company primarily focuses on mobile and web game development and publishing and comprises of more than 2,000 talented individuals and has experience in game development and publishing for over 200 titles.