ASX-listed mobile games and entertainment group iCandy Interactive has announced raising $1 million from e-sports and blockchain company eSports.com Group.
According to the announcement, iCandy has signed a legally binding term sheet with eSports.com and existing shareholder Fatfish Internet Group Ltd, where it will issue 16.5 million new ordinary shares at A$0.08 per share, in return for the strategic investment.
This investment represents 5.18 per cent of iCandy’s fully diluted capital structure, which also accounts for the imminent share issue relating to the acquisition of the ASX-listed Animoca Brands Ltd in Nov 15, 2017.
The deal will also see Fatfish exchange 45.6 million of its ordinary shares in iCandy for ordinary shares in eSports.com where iCandy’s shares exchanged will be valued at A$0.10 per share. This will translate into Fatfish owning about 3.45 per cent of the total enlarged issued share capital of eSports.com.
“This is an exciting opportunity to partner with an industry leader such as eSports.com. There are strong working synergies between both iCandy and eSports.com and once the transaction is complete, the collaborative working relationship will drive both businesses in a very positive way,” said iCandy chairman Kin Wai Lau, who is also CEO of Fatfish.
Upon the completion of both transactions, eSports.com will own 19.5 per cent of iCandy and the former will appoint a director onto iCandy’s board.
eSports.com will also be looking at a potential collaboration with cryptocurrency and blockchain project Nitro, which iCandy had backed last year. iCandy is the main publisher of the games that Nitro funded or developed through its online marketplace.
Germany-based eSports.com claims to have over 360 million users across Europe, Asia, North and South America on its e-sports platform.
Southeast Asia-focused iCandy invests in studios – primarily in Australia, Singapore, Indonesia, and Malaysia – to produce quality interactive entertainment for the global mobile games market.