Animoca Brands Corporation Ltd (ASX:AB1) has entered into a binding term sheet to acquire 100% of Stryking Entertainment for an upfront consideration of €1 million (about $1.58 million) payable in shares.
Stryking is a Germany-based creator of the popular fantasy sports game Football-Stars.
Stryking holds an official license from the Bundesliga, the top-tier German football league, for the right to use all club logos and player pictures.
It also has a license from renowned German football club Bayern Munich, to use the Bayern Munich brand and assets to produce dedicated content for fans within Football-Stars, starting with the 2019/2020 football season.
Bayern Munich will promote the collaboration to their fans in Europe and Asia through their website and their more than 60 million social media followers.
The acquisition of Stryking is highly complementary to Animoca Brands and its projects.
Stryking has a highly experienced management team of serial entrepreneurs in the fields of games and finance.
Dirk Weyel, the founder and CEO of Stryking, has 20 years of experience in the games industry.
Hong Thieu, the CFO of Stryking, is a serial entrepreneur and investor with 20 years of experience in corporate finance, investor relations, public relations, and compliance at listed companies.
Deals with major international sports brands
Football-Stars is a game that aligns strongly with Animoca’s own blockchain and NFT (non-fungible token) strategy, with an upcoming game update that will offer NFTs based on real football players and clubs.
Importantly, the acquisition adds to Animoca’s licencing arrangements with major international sports brands, which also include Formula 1® and Major League Baseball.
Animoca co-founder and chairman Yat Siu said: “The acquisition of Stryking cements Animoca Brands’ leadership in blockchain games, collectibles and sports.
“Fantasy sports is a 7 billion dollar industry and a perfect use case for blockchain and NFTs.
“We are also extremely honoured to bring on board Dirk and Hong, who are seasoned industry veterans with significant capital markets experience.”
Animoca has completed a heavily oversubscribed strategic capital raise of $4.6 million at a 4.2% premium to its 30-day VWAP (volume weighted average price) from international blockchain investors, Australian institutional investors and existing shareholders.
The capital raise will allow Animoca to take advantage of multiple business opportunities and to fast track development and promotion of upcoming games and NFT launches.
Animoca received considerable support from top tier fund managers and institutions including Perennial Value Management, SG Hiscock, and existing shareholders Sun Hung Kai, Katherine Yip-Ribeiro and Moses Tsang.
Key international blockchain investors included Stellar Partners, Blocore, and Plutus VC.