Games and app developer Animoca Brands on Friday announced that it has raised $4.1 million from strategic investors including M7 Asia, Mind Fund and others.
The company plans to use the proceeds for a proposed initial public offering of the assets it plans to spin off — these include subsidiaries Pixowl SA, TSB Gaming, nWay Inc., and Quidd Inc — on Euronext or another public exchange. The company will also use the funds to meet its working capital needs.
The $4.1 million investment includes $2 million from M7 Asia and $2.1 million from Mind Fund and other investors. The convertible notes have a coupon rate of 9 per cent and are repayable at maturity subject to a number of redemption and conversion rights.
“We are incredibly honored and pleased that our vision for the future of digital assets and blockchain gaming has earned the confidence of some of the world’s most successful tech investors M7 and Mind Fund,” said Yat Siu, co-founder and chairman of Animoca Brands.
M7 Asia, which focuses on alternative investments in Asia, is a subsidiary of M7 Real Estate Ltd. The company manages over 830 retail, office and industrial properties with a value of €4.7 billion (approximately A$7.6 billion).
Mind Fund, meanwhile, is a global venture capital company that has invested in several companies in the US and Asia. The firm is an investor in Bytedance.
Mind Fund also has an institutional partnership with Tokyo and San Francisco-based Digital Garage to collaborate and co-invest in a Global Incubation Stream of world-class entrepreneurial companies.
“We believe deeply in the company’s vision to use blockchain to build economies where true digital ownership in games and virtual worlds will become a reality for hundreds of millions of people,” said Adam Lindemann, partner at Mind Fund.
Most recently, Animoca Brands acquired social casual gaming platform GAMEE for €4 million ($4.5 million) in shares plus earn-out payments of up to €1 million ($1.1 million) in cash or shares.
In December last year, the game developer entered into an agreement to acquire 100 per cent of the issued capital in nWay, Inc for $7.69 million. nWay is a San Francisco based developer and publisher of competitive multiplayer games across mobile, consoles, and PC.