Animoca Brands announced that Ourpalm Co Ltd has agreed to make a strategic cash investment in the company. Ourpalm will invest USD 2.3 million in cash for 11.11% of the Company’s expanded share capital. The purchase price will be $0.21 per share, representing a premium of 23.5% over the closing price on 24 June 2015. The partnership with Ourpalm is expected to greatly enhance Animoca Brands’ ability to increase revenue generation and accelerate penetration into the Chinese market. Ourpalm will work closely with Animoca Brands to grow its market share in China, and widen its game distribution in the region as it leverages Ourpalm’s distribution channels and know-how.
Ourpalm is China’s leading listed mobile and social web game developer and publisher, employing over 2,000 dedicated staff and working with a global network of companies to publish hundreds of games across China, Southeast Asia, Europe and the US. Ourpalm pursues strategic investment mergers and acquisitions with game developers and industry leaders. Recent M&As include Dovo Entertainment, PlayCrab, ShangGame, TIANMA, BLINGSTORM and also strategic investments in Unity Software and H&R Century Pictures.
The Company has also granted an option to Ourpalm for a further investment of up to US$5 million at a price equal to 150% of the Subscription Price ($0.21) when the volume weighted average price of the Company’s shares over a five day period reaches 150% of the Subscription Price. Ourpalm will have a period of 30 days to exercise the option after the date upon which that price has been reached. Any shares exercised under the option will be voluntarily escrowed for a period of twelve months from the date of issue of the exercised Shares.
As a further part of the investment, Mr. Steven Hu, co-CEO of Ourpalm and a high profile corporate executive, will be appointed as Non-Executive Director of Animoca Brands upon completion of the investment. Mr Hu will join a solid non-executive board, which already includes Mr. David Brickler, Mr. Martin Green, Mr Richard Kuo and Mr. Yat Siu.
Steven Hu is the co-CEO of Ourpalm. Prior to joining Ourpalm in 2013, Mr. Hu was the partner of venture capital firm Qiming Venture Partners. Since joining Qiming in 2009, he led investments into numbers of TMT companies, including Xiaomi, Domob, Zhihu.com, D.cn, and Jiayuan.com (NASDAQ: DATE). Mr. Hu has more than 10 years of experience in the internet and wireless industry, and is one of the earliest veterans in the space. Before turning to venture capital, Mr.Hu played an important role in three NASDAQ listed companies: KongZhong (NASDAQ: Kong), Sohu (NASDAQ: SOHU) and Sina (NASDAQ: SINA). He was one of the founding members of KongZhong and served as vice president from 2002 to 2007.
On 28 May 2015 Animoca Brands announced it had partnered with Ourpalm to publish the Android version of Doraemon Gadget Rush in China. The success of this partnership has led to further validation of Animoca Brands’ strategy, with Ourpalm becoming a strategic investor in the business.
Mr. Robby Yung, CEO, Animoca Brands commented: “We are very encouraged by the investment and partnership with Ourpalm. Ourpalm’s recognition in the mobile gaming market in China makes them the ideal partner for Animoca Brands as we look to grow our distribution and revenues further throughout the China region. The capital and expertise to be provided by Ourpalm will boost the Company’s expansion plans and provide further validation of our business model and strategy.”
Mr. Steven Hu, co-CEO of Ourpalm Co. Ltd commented: “I am delighted to be joining the board of Animoca Brands. The Company has demonstrated a strong record of licensing and monetizing well-known brand names and developing highly successful mobile games. The Animoca Brands game portfolio strategy has proven to be a successful formula, and creates a platform for further opportunity and growth within the mobile gaming market. I look forward to the Company’s future growth and being a part of this exciting phase of expansion in the mobile gaming sector.”
Source: Animoca
