ICandy Fulfilled All Conditions Precedent Of The Joyseed Acquisition Agreement

  • Jan 03, 2019 AEDT
  • Team Kalkine
ICandy Fulfilled All Conditions Precedent Of The Joyseed Acquisition Agreement

ICandy Interactive Limited (ASX: ICI) is mainly involved in the development and publishing of mobile games which are currently played by over 350 million gamers worldwide.

Since May 2018, ICandy is in the process of acquiring 70 percent of PT Joyseed Berbagi Sukses. In May, the company signed a term sheet for the acquisition and later in October 2018 entered into a definitive agreement with Bernardus Boy Dozan Poerniawan and Joseph Putra Wibawa (vendors) to acquire 70% of Joyseed.

Today (i.e., 3 January 2019) ICandy announced that Joyseed Acquisition has become Unconditional as all of the conditions precedent of the Agreement has been fulfilled. It is expected that the settlement of the transaction will happen within five business days. Following this news, the share price of ICandy increased by 4 percent as on 3 January 2019.

ICandy has obtained the necessary approval form Badan Koordinasi Penanaman Modal Republik Indonesia (BKPM) and Ministry of Law and Human Rights of Indonesia for the transaction.

As per the terms of the acquisition, all the iCandy shares which are issued to Dozan Poerniawan and Joseph Putra Wibawa under the Agreement shall be listed on the ASX. All the shares will also be subject to a moratorium of 2 years from the date of issuance.

The company also informed that due to limitations of foreign ownership rules in Indonesia, the Company and the Vendors had entered into a supplemental agreement to reduce the acquisition of Joyseed from 70 percent to 67 percent.

Earlier the consideration on the acquisition was around A$350,000; however, after the reduction of the acquisition shares from 70 percent to 67 percent, the consideration has been reduced to $335,000.  The consideration will be settled by the issue of iCandy shares at a deemed issue price of A$0.09 each.

As per the terms of the acquisition, Joyseed shall have a maximum of 3 Directors in its Board of Directors and iCandy is having the right to appoint up to 2 Directors. Further, Joyseed is also having a right to appoint a maximum of 2 Commissioners in its Board of Commissioners while iCandy has the right to appoint up to 1 Commissioner.

Based in Indonesia, Joyseed is an award-winning mobile game development studio which released its first game (Hollywhoot) in August 2018. In October 2018, ICandy started the pre-sale from its first-ever blockchain game, Cryptant Crab which generated strong presales from the gaming community, with over A$69,000 of revenue realized in the first ten days.

In November 2018, ICandy signed a memorandum of understanding (MOU) with Malaysia Digital Economy Corporation (MDEC) to provide funding and knowledge sharing for nurturing of Malaysian game developers that are developing blockchain powered games.

Meanwhile, in the last six months, the share price of ICI increased by 8.70 percent as on 2 January 2019. ICI’s shares traded at $0.052 with a market capitalization of circa $15.45 million as on 3 January 2019 (AEST 2:57 PM).


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