Animoca Brands Corporation Limited (ASX: AB1) is an app maker for smartphones and tablets and operates in the information technology sector.
The company today, on 23rd May 2019, announced that TSB Gaming Ltd., a wholly-owned subsidiary of AB1, has raised US$2.5 million or ~A$3.6 million, consisting of 40% in cash and 60% in Bitcoin cryptocurrency, through the issue of “SAND” utility tokens and simple agreement for future equity (SAFE) convertible securities.
Most of the investors have allocated their investment to the purchase of both SAND and future equity via the SAFE notes (in the amount of US$2 million), while some investors have allocated their investment exclusively to the purchase of SAND tokens (US$500,000). SAND will be utilised in the upcoming blockchain version of The Sandbox user-generated content game platform.
The funds raised through this transaction will be used to increase the development team count and infrastructure for the Game Platform, underpin the marketing efforts through acquisition of creators and IP licenses, and provide for security, legal, and compliance expenses as well as general and administrative costs. AB1 anticipates that the sale of SAND tokens will be treated as revenues, while proceeds from the SAFEs will be treated as liabilities, subject to confirmation by the company’s auditors.
Source (Company Reports)
The Sandbox is currently a highly successful mobile game franchise with 40 million installs and 1.2 million active monthly users. It will become one of the first decentralised, community-driven game platforms, providing users with true ownership of their creations as non-fungible tokens once the blockchain version is launched. AB1 expects The Sandbox’s decentralised marketplace to launch in Q3 2019.
Distributed Protocols PTE LTD (“Hashed”) is the largest crypto assets fund and accelerator in South Korea with its operations based in San Francisco and Seoul led the investment into TSB Gaming. Other investors included Helix Accelerator Limited, Mind Fund Group Ltd., Blocore (Gameberry Inc.), Thundercore Token Ltd., Klaytn PTE. Ltd., and Alexis Bonte.
As agreed in the Advisory Services Agreement, Hashed will provide service to The Sandbox game platform (including but not limited to business, strategy, promotion, public relations, networking, and potential listing services for the SAND utility tokens) for payment of 55,555,555.56 SAND tokens worth US$400,000.
Further, TSB Gaming has also entered in a partnership agreement with Klaytn PTE. Ltd., a recently established blockchain project led by Kakao. Kakao has a market cap of approximately US$9.2 billion (approximately A$13.3 billion) and is one of the dominant messaging apps, with more than 50 million monthly active users across the globe.
As per the Partnership Agreement with Klaytn, TSB Gaming will make The Sandbox available on to Klaytn’s Main Net and will obtain the right to exchange a maximum of US$200,000 (~A$288,000) worth of SAND tokens for $400,000 (~A$576,000) worth of Klay tokens.
In an another announcement related to AB1, iCandy Interactive Limited (ASX: ICI), a developer and publisher of mobile games and digital entertainment for a global audience, announced that it has entered in a Game Cooperation Agreement with Animoca Brands Limited and Guangzhou Aijuyou Information Technology Co. Ltd for the publishing, localisation and marketing in Mainland China of iCandy’s mobile game ‘Groove Planet’, earlier acquired from Animoca Brands. It is to be noted that AB1 is a substantial shareholder of iCandy. Further, iCandy holds global exclusive rights to the game while AB1 is the record holder of the ownership rights. This deal should auger well for AB1.
The stock is currently suspended from trading on ASX related to a capital raising by one of AB1’s subsidiaries. The trading will remain suspended until the issue is resolved. The stock of Animoca Brands Corporation Limited last traded at $0.150 as on 10th May 2019.
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