Ann: Leads investment into Sky Mavis, maker of Axie Infinity, page-4

Animoca Brands leads investment round into Sky
Mavis, maker of Axie Infinity
Highlights:
● The Company is acquiring US$420,000 (approx. A$610,000) worth of shares of Sky
Mavis in a cash and scrip deal (consisting of US$125,000 in cash and US$295,000 in
AB1 shares issued at A$0.18 per share)
● Animoca Brands leads Hashed, Pangea Blockchain Fund, ConsenSys, and 500
Startups in an investment round totalling US$1.465m (approx. A$2.13m) into Sky
Mavis, the maker of the highly rated blockchain game Axie Infinity
● The Company has signed an Advisory Agreement with Sky Mavis to receive advisory
and consultation services in the areas of scarcity models and non-fungible tokens
(NFTs)
● The Company has signed a memorandum of understanding to explore further
collaboration with Sky Mavis
● Axie Infinity is among the highest-grossing blockchain games, with sales of over
US$1.1m (approximately A$1.6m), and partners that include Samsung, Klaytn
(Kakao), MakerDAO, and Loom Network
Animoca Brands Corporation Limited (ASX: AB1, “the Company”) is pleased to advise that it
has entered, via its wholly-owned subsidiary Animoca Brands Limited, into a subscription
agreement (“Subscription Agreement”) with Sky Mavis PTE. LTD (“Sky Mavis”) to acquire
US$420,000 (approximately A$610,000) worth of ordinary shares in Sky Mavis for cash and
shares in the Company. The Company has also signed an advisory agreement (“Advisory
Agreement”) and a collaboration memorandum of understanding with Sky Mavis. Sky Mavis
is the maker of the highly rated blockchain game Axie Infinity.
Animoca Brands Corporation Limited
ACN 122 921 813
Level 12, 225 George Street, Sydney NSW 2000
http://www.animocabrands.com/
Sky Mavis is a blockchain game developer based in Singapore and Vietnam, well-known for
its blockchain pet game Axie Infinity. Sky Mavis has raised a total of US$1.465 million
(approximately A$2.13 million) from the Company, as lead investor, as well as from Hashed,
Pangea Blockchain Fund, ConsenSys, and 500 Startups. Sky Mavis will use the funds to
accelerate the development of Axie Infinity to include more features and to continue pushing
the blockchain gaming industry forward.
Axie Infinity is a digital collectible pet game built on the Ethereum blockchain. In Axie Infinity,
players can battle, raise, evolve, and trade fantasy creatures called Axies, which are visual
representations of NFTs owned by the players. Each Axie has its own distinct look and
attributes, and cannot be replicated. Axie Infinity launched in early 2018, and it is now one
of the highest-grossing blockchain games, with over US$1.1 million (approximately A$1.6
million) in sales of non-fungible tokens (NFTs). Its in-house marketplace has processed over
25,000 transactions with a total value of US$1.8 million (approximately A$2.62 million).
Axie Infinity has partnered with Samsung, Klaytn (the blockchain project of Kakao),
MakerDAO, and Loom Network. Sky Mavis plans to release a new card game set in the Axie
Infinity universe, with launch expected in the first half of 2020.
Details of the agreements
Subscription Agreement
As set out in the Subscription Agreement, the Company is investing US$420,000
(approximately A$610,000), comprising of cash and shares into Sky Mavis. This investment
consists of US$125,000 (approximately A$182,000) in cash, and US$295,000
(approximately A$429,000) in fully paid ordinary shares of the Company issued at a price
per share of A$0.18.
Advisory Agreement
The Company has entered into the Advisory Agreement with Sky Mavis to receive advisory
and consultation services in the areas of scarcity models, as well as the design,
development, and distribution of non-fungible tokens. The Company will pay Sky Mavis a fee
amounting to US$45,000 (approximately A$65,000), payable in fully paid ordinary shares of
the Company issued at a price per share of A$0.18.
Collaboration Memorandum of Understanding
In addition, the Company has signed a collaboration memorandum of understanding with
Sky Mavis to explore opportunities to market and promote each other’s products to their
respective platforms and networks, as well as to engage in discussions to publish Sky
Mavis’s products in various markets.
Animoca Brands Corporation Limited
ACN 122 921 813
Level 12, 225 George Street, Sydney NSW 2000
http://www.animocabrands.com/
Securities Issue
The Company intends to issue the new shares under the capacity provided by ASX Listing
Rule 7.1. The proposed security issue is shown in the table below.
Capacity (Pre-Issue) Issue
Listing Rule 7.1 115,964,505 shares 2,713,735 shares
Listing Rule 7.1A 63,114,359 shares -
Total (shares) 2,713,735
1,791,065 of the new shares to be issued by the Company in connection with the
Subscription Agreement and the Advisory Agreement shall be subject to an escrow period of
three months from the date of issue. Following the release of these shares from escrow, Sky
Mavis has agreed that it will limit its resale of these shares in the public markets to 10% of
the total amount, per week.
Management commentary
Yat Siu, co-founder and chairman of Animoca Brands, said: “We are very pleased and
honoured to invest in and work with Sky Mavis, who has built up Axie Infinity into one of the
most successful and popular blockchain games on the market. We look forward to a fruitful
relationship.”
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About Sky Mavis
Sky Mavis is a technology company that aims to bring the benefits of the blockchain to everyone
through fun and practical applications. Our products allow anyone to truly own their digital identity and
game assets