Mobile game developer iCandy Interactive’s (ASX:ICI) acquisition of Animoca Brands’ (ASX:AB1) mobile casual games portfolio is gaining ground with iCandy shareholders approving a share issue to Animoca Brands as part of the transaction.
At an AGM held earlier in the week, iCandy shareholders approved the issue of up to 25 million fully paid ordinary shares to Animoca Brands, which constitute part of the upfront consideration the company will receive for the sale of 318 mobile game apps to iCandy.
Following the share issue, Animoca Brands will also receive the remaining consideration of A$0.75 million in cash.
The Company will be entitled to receive deferred share-based consideration of up to A$3 million, subject to the achievement of revenue hurdles in 2018 and 2019, and the Company is also entitled to a share of profit from the games sold for five years following the completion of the transaction.
The transaction results in Animoca Brands selling 318 of its existing 524 mobile games to iCandy, leaving Animoca Brands with a strengthened balance sheet and well positioned to pursue its strategic direction and continued development of blockchain gaming and AI-based products.
Today’s news comes after Animoca Brands partnered with leading Japanese boutique software development and advisory firm Red Robot to develop, market and operate a gamified multiple cryptocurrency wallet mobile app.
Shares in iCandy were at 6.4c and Animoca Brands were at 4.1c in Thursday trading.
