- iCandy Interactive (ICI) signs a binding term sheet to acquire a 60 per cent stake in Gameconomy for MYR1.5 million (A$497,264)
- Gameconomy is a Malaysia based gaming backend technology company which has been developing metaverse-related technologies
- ICI will provide a cash payment of MRY750,000 (A$248,632) to acquire a 30 per cent enlarged shareholding
- Another 30 per cent will be acquired from Gameconomy’s management for MYR750,000 (A$248,632) which will be paid in cash and iCandy shares
- Shares were trading 5.17 per cent higher this morning at 15.3 cents
iCandy Interactive (ICI) has signed a binding term sheet to acquire a 60 per cent stake in Gameconomy for MYR1.5 million (A$497,264).
Gameconomy is based in Kuala Lumpur, Malaysia and is a gaming backend technology company, which has progressed through two global incubator/accelerator
programs: Founder Institute and HYPE Spin Accelerator between 2019 and 2020.
It has been developing metaverse-related technologies and is working with private and public clients to develop smart contracts technologies.
iCandy and Gameconomy will work together on a metaverse-related real-time player-versus-player (PvP) game that incorporates various gameplay mechanics that
account for character improvements and growth, and environment attributes and
characteristics.
The game is expected to launch in the first half of this year.
The acquisition will consist of iCandy investing MRY750,000 (A$248,632) cash into Gameconomy in return for a 30 per cent enlarged shareholding in Gameconomy.
iCandy will also acquire another 30 per cent from Gameconomy’s management for a total payment of MYR750,000 (A$248,632) which will be split to be paid in cash and iCandy shares.
The shares will be issued in 12 equal tranches on a quarterly basis over three years. The first tranche will be issued within 15 business days from the date the acquisition becomes unconditional.
The issue price of the shares will be the 5-day volume-weighted average price (VWAP) of iCandy shares prior to the unconditional date. The shares will be subject to a one-year voluntary moratorium from the date of issue.
The transaction is conditional upon satisfactory due diligence outcome by iCandy on Gameconomy which is expected to be complete mid-February.
iCandy believe the acquisition will help it with metaverse gaming by improving its gaming backend tools and capabilities.
ICI also views this as an opportunity to build a great talent base with Gameconomy’s experienced team of developers.
After the acquisition, iCandy said Gameconomy will continue to be led by a team of experienced software engineers.
Shares were trading 5.17 per cent higher this morning at 15.3 cents each at 11.39 am AEDT.