iCandy Interactive (ASX:ICI) to form new game studio with Lemon Sky

• iCandy Interactive (ICI) has entered a binding term sheet with Lemon Sky Studios to set up a new joint venture game studio company (JV-Co)
• The JV-Co will focus on developing 3D mobile games with cross-platform potential and AAA quality
• Lemon Sky is one of the leading animation and digital art studios in the world, having worked with the likes of Disney, Nickelodeon and Blizzard Entertainment
• Under this agreement, iCandy will offer its large gaming community and skill in mobile gaming, while Lemon Sky will offer its animation and digital art skills
• Both companies will equally contribute a total of MYR 1 million (around A$335,000) in initial working capital
• iCandy is up a healthy 10.5 per cent on the market with shares trading for 21 cents each

iCandy Interactive (ICI) has entered a binding term sheet with Lemon Sky Studios to set up a new joint venture game studio company (JV-Co).

The JV-Co will develop 3D mobile games with cross-platform potential and AAA quality.

Essentially, AAA quality is used for video games which are produced and distributed by mid-sized to major publishers. They typically have higher development and marketing budgets.

Lemon Sky is one of the leading animation and digital art studios in the world. It focuses on developing animation and digital art for the video game industry.

Since its foundation in 2006, Lemon Sky has worked with the likes of Disney, Naughty Dog, Nickelodeon, Blizzard Entertainment and 2K Games.

It has a successful track record of working on AAA games such as Warcraft 3: Reforged, Marvel’s Avengers, Uncharted: The Lost Legacy, and the Final Fantasy VII Remake.

In this agreement, iCandy will offer its large gaming community and skill in mobile gaming, while Lemon Sky will offer its world-class animation and digital art skills.

The joint venture will be incorporated in Malaysia with a 50:50 initial shareholding. An initial game studio will also be set up in Kuala Lumpur.

Both companies will equally contribute MYR 1 million (around A$335,000) in initial working capital.

iCandy is up a healthy 10.5 per cent on the market with shares trading for 21 cents each at 2:13 pm AEDT.