Animoca’s Shares Surge Up By 5 Percent Post Confirmation Of Stryking Entertainment Acquisition

Animoca’s Shares Surge Up By 5 Percent Post Confirmation Of Stryking Entertainment Acquisition

Animoca Brands Corporation Limited (ASX: AB1) is a company related to information technology with its operations in the creation of apps for smartphones and tablets. Several acquisitions and partnerships have led to the formation of the company, which publishes and develops games as well.

The company today, on 4th April 2019, has announced that it has entered in a binding term sheet with Stryking Entertainment GmbH for the acquisition of 100% of its equity for €1 million (~A$1.58 million). This will be payable in common shares of Animoca Brands, and up to €2 million (~ A$3.15 million) in earn-out payments, payable in cash or shares at the company’s option, but subject to the company being profitable and have positive cash flows. Also, €1.2 million net revenues per post audit per period for two periods to be eligible. The total number of common shares in consideration will be 139,092.

The number of Animoca shares to be issued to Stryking will be determined at a price per share of A$0.10, with the shares subject to a lock-up period of 12 months, and the recipients of those shares will be subject to certain selling restrictions following the end of the lock-up period.

Sponsored ad by Kalkine

Stryking operates the popular fantasy sports game, Football-Stars. The company has completed a heavily oversubscribed strategic capital raise of A$4.6 million to fulfil the requirement of funds for the advancement of various business opportunities. Stryking is based out of Germany and gives sports fans experiences of real action. Stryking operates the award-winning fantasy sports platform Football-Stars, which provides soccer fans all over the world an exhilarating and varied gaming experience on the web and mobile devices.

Animoca is focused on the next step of Football-Stars’ development, which includes the addition of blockchain gaming elements, starting with the integration of a collectible game using NFTs centred around real football players and clubs.

The strategic rationale motivating the acquisition of Stryking is in line to Animoca Brands and its projects. Stryking has a highly experienced management team of serial entrepreneurs in the fields of games and finance with hundreds of millions of dollars in successful exits.

Stryking holds an official license from Bundesliga, the top-tier German football league, for the right to use all the Bundesliga club logos and player pictures in Football-Stars. It also has a license from FC Bayern München for the right to use the brand and assets of Bayern Munich to produce dedicated content for fans within Football-Stars, starting with the 2019/2020 football season. To secure additional premium partnerships, Stryking is currently in advanced negotiations with other international leagues, clubs and media houses.

In another update, Animoca Brands mentioned that the suspension of trading in the securities of the company has been lifted immediately, following the release of the announcement regarding its capital raising and acquisition by the company.

On the price-performance front, the stock of Animoca Brands Corporation Limited at market close on 4th April 2019, traded at $0.105, with an increase of 5% during the day’s trade. The stock has generated a 12.36% return over the past six months and a negative return of 4.76% over the last three months. Its 52-week high price stands at $0.115 with an average trading volume of 2,013,910.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice

Facebook Comments
Join Our Forum

We help you to connect with investors and people connected with the stock market.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here