Looking Glass Labs (LGL) said it has entered into a letter of intent (LOI) to sell the GenX smart contract and all associated intellectual property to GenZeroes Productions Inc.
The company explained that GenZeroes Productions owns and produced a live-action series consisting of live-action episodes and comics in the science fiction genre, with lore that includes references to the GenX collection — a collection of robot characters created by artists.
GenZeroes Universe Inc is led by Aleks Paunovic, an actor and producer as well as a cast member of GenZeroes; Rick Dugdale, a director and producer, and founder of Enderby Entertainment; and Neil Stevenson-Moore, LGL’s chief product officer, it added.
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“The team at our flagship subsidiary, House of Kibaa (HOK), did a great job of generating value by creating GenZeroes and GenX from scratch, we feel that GenZeroes and GenX will be better positioned to flourish with the new leadership team,” LGL CEO Dorian Banks said in a statement.
“This proposed transaction provides LGL with an opportunity for future revenue without further investment,” Banks added. “Once the transaction is closed, LGL will continue to focus on its Pocket Dimension metaverse and providing digital design and other consulting services to third parties in the Web 3.0 space.”
Upon acquisition of the assets, LGL said GenZeroes Universe intends to leverage the experience of its leadership team to further develop GenZeroes and explore opportunities to monetize the assets in the entertainment and film industry. The proposed transaction will also provide LGL with the opportunity for future revenue from GenZeroes without the requirement of further capital investment, it added.
The company cautioned that the deal remains subject to the entering into of definitive agreements and standard closing conditions for a transaction of this nature, adding that it will provide an update on the closing of the transaction contemplated under the LOI as necessary.
Maximizing value
Based on the purchaser’s strong relationships within the entertainment industry, LGL said it is well-positioned to maximize the value of GenZeroes and GenX for the mutual benefit of itself, the company as well as the GenZeroes and GenX communities.
Concurrent with the closing of the proposed sale of the assets, LGL said Stevenson-Moore will resign from the company to focus on developing GenZeroes through the purchaser.
As consideration for the assets, LGL said it will receive a promissory note for C$800,000 bearing an interest rate of prime rate plus 1% and a five-year term to maturity, with the option by the purchaser to extend the term for an additional five years.
Additionally, LGL will retain a 50% royalty in perpetuity on all net proceeds from the entity GenZeroes Productions, which relates to the already completed first season of the GenZeroes series. The note will be secured against the shares of GenZeroes Productions and the related intellectual property (IP).
In addition to the LOI, LGL said it has initiated a process to evaluate potential strategic alternatives to preserve or maximize shareholder and user value.
Pocket Dimension the focus
Upon closing the transactions, LGL said it will continue to focus on building its Pocket Dimension product and seeking partnerships.
The company explained that Pocket Dimension is a private virtual space representing an area size of approximately four acres parcels which provide their owners, held through non-fungible tokens (NFTs), the ability to explore the virtual space and socialize with other users, through avatars, within the virtual world.
The Pocket Dimension metaverse is a digital world that has been built using the latest version of Unreal Engine to offer users a high-fidelity virtual experience. Each Pocket Dimension features one of eleven different environments including Archipelago, Countryside, Dale, Dunes, Fjord, Marsh, Savanna, Tundra, Woodland and Zen, and Genesis Moon.
LGL reminded investors it released the beta version of Pocket Dimension in February 2023 and is using the beta phase to collect feedback from users to address technical glitches.
The Pocket Dimension Beta version has been built upon the previous updates included in the alpha release, which brought the following upgrades to users:
- Eleven unique four-acre parcels of ultra-realistic land;
- Two stock playable avatars;
- Four NFT art galleries displaying stock artwork;
- Non-player character host interactions; and
- The Gutter Trap House in affiliation with the Gutter Cat Gang.
By the end of the second calendar quarter, LGL said it expects to finalize its Pocket Dimension with improvements to certain bugs identified during the beta phase while seeking other Web 3.0 communities to participate in the metaverse.
Overlords
Overlords is a digital battle game where opponents battle one another and are represented by avatars from the GenX avatar collection. LGL said it has developed Overlords to an early alpha stage that provides a playable demo featuring early game concepts and interfaces. The company is currently seeking partners to further develop Overlords into a version to be made available for the gaming community, it added.
Genesis membership
LGL noted that the HOK genesis memberships granted owners access to members-only benefits including airdrops, private discord access, and presale opportunities for Web3 community initiatives. The company said it has updated its mandate with the goal of reducing cash burn. It has two further airdrops scheduled featuring the Qt-Bot, which is designed to be an in-app NPC (non-playable character) feature for future versions of Pocket Dimension.
Headquartered in Vancouver, British Columbia, Looking Glass Labs is a leading Web3 innovation platform specializing in consumer engagement applications to leverage immersive metaverse environments, play-to-earn tokenization and blockchain monetization strategies.
Its leading brand, House of Kibaa (HoK), designs and curates a next-generation metaverse for 3D assets, which allows functional art and collectibles to exist simultaneously across different NFT blockchain environments.
Contact the author at stephen.gunnion@proactiveinvestors.com