Post the quarter, Animoca Brands raised $4.5 million in a heavily oversubscribed placement to strategic investors, including directors Yat Siu and Holly Liu, strategic advisor Wilhelm Taht, and strategic blockchain partners.
Record quarterly revenues
Animoca Brands received record unaudited revenues during the quarter of approximately $8.2 million, including a one-off gain of $5 million on the sale of assets to iCandy Interactive Limited (“ICI”). Excluding the one-off gain from the sale to ICI (the majority of which was received in shares), the pro forma unaudited revenues of Q2 2018 are still the second-highest unaudited quarterly revenues recorded by the Company since its IPO (after the unaudited $3.4 million recorded in Q1 2018). The unaudited revenues of approximately $8.2 million represent an increase of more than 355% on the same period last year, during which the Company recorded Q2 2017 unaudited revenues of $1.8 million.
Update on asset sale to iCandy
As disclosed on 24 May 2018, the Company will receive a payment of $0.75 million in five monthly instalments beginning in July 2018, plus 25 million ordinary shares in iCandy Interactive Limited (ICI) as part of the consideration. The Company received the 25,000,000 shares in ICI prior to the end of the quarter. In addition, as announced on 25 June 2018, the Company will also receive a migration and maintenance fee of approximately $500,000, in cash or shares, within three months of the completion of the sale.
Milestones during the Quarter
The Company announced a global licensing deal with Coolabi Group to develop a mobile game based upon the hit children’s fantasy novel franchise Beast Quest. This new game will leverage technology and game play from the highly successful Crazy Kings and Crazy Defense Heroes mobile games.
The Company entered a joint venture with Red Robot KK to develop, market, and operate a gamified cryptocurrency wallet app. This app will contain features and tutorials to educate everyday consumers and represents a significant opportunity to gain market share in the rapidly growing cryptocurrency and blockchain wallet market.
The Animoca Brands subsidiary Olive X partnered with the North Point Kai Fong Welfare Advancement Association to produce an AI-based mobile app for Android and iOS to teach Baduanjin qigong, a form of Chinese exercise with documented health benefits. The project was awarded a grant of approximately $770,000 by the Hong Kong Government’s Innovation and Technology Fund for Better Living.
Mr. Chris Whiteman and Ms. Holly Liu were appointed as Non-Executive Directors to the Company’s board of directors. Mr. Whiteman is currently senior advisor to one of Australia’s leading energy companies and was formerly with Taylor Collison, Santos Limited, TXU Australia, and Credit Suisse First Boston. Ms. Liu is the co-Founder of the mobile gaming company Kabam, whose assets sold to Netmarble in February 2017 for approximately A$1 billion.
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