Animoca Brands (ASX:AB1) is receiving a $3.1 million investment from leading Chinese mobile game developer Ourpalm Co Ltd (SHE:300315).
The investment solidifies its existing relationship with Ourpalm is a strong endorsement from a market leader in China.
Ourpalm is investing the funds in consideration for 14,785,714 shares representing 11.1% of the company’s expanded share capital.
The purchase price of $0.21 per share represents a premium of 23.5% over the closing price on 24th June 2015.
The partnership with Ourpalm is expected to greatly enhance Animoca's ability to increase revenue generation and accelerate penetration into the Chinese market.
Ourpalm will work closely with Animoca to grow its market share in China, and widen its game distribution in the region as it leverages Ourpalm’s distribution channels and knowhow.
Animoca has also granted Ourpalm an option for a further investment of up to US$5 million at a price equal to 150% of the subscription price ($0.21) when the volume weighted average price of the company’s shares over a five day period reaches 150% of the subscription price.
Ourpalm has a market cap of 29.1 billion yuan (A$6.2 billion). It is China’s leading listed mobile and social web game developer and publisher, employing over 2,000 dedicated staff and working with a global network of companies to publish hundreds of games across China, South East Asia, Europe and the U.S.
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