Animoca Brands Corporation Ltd has entered into unsecured convertible promissory notes with a number of strategic investors for net proceeds of US$4.1 million (~A$6 million).
Investors include M7 Alternative Investment Strategies Asia Ltd, Mind Fund Group Limited as well as others.
The convertible notes have a coupon rate of 9%, repayable at maturity subject to several numbers of redemption and conversion rights.
"World's most successful tech investors”
Animoca co-founder and chairman Yat Siu said: “We are incredibly honoured and pleased that our vision for the future of digital assets and blockchain gaming has earned the confidence of some of the world’s most successful tech investors M7 and Mind Fund.”
The capital raise will provide working capital and support a proposed initial public offering (IPO) the company is seeking by spinning off the assets of Pixowl SA, TSB Gaming, nWay Inc and Quidd Inc on Euronext or other public exchange.
M7 Asia convertible note
Under the M7 Asia convertible note, the company has raised US$2 million which carries an interest rate of 9% per annum, with the interest payable every six months.
The principal and any unpaid interest on the Convertible Notes are due and payable 24 months from the commencement date of June 18 subject to a conversion event or redemption.
M7 is a subsidiary of M7 Real Estate Ltd, one of the leading specialists in the pan-European, regional multi-let real estate market.
It is a property fund and asset management business owned by its senior managers with around 330 employees in 13 countries across Europe.
The team manages more than 830 retail, office and industrial properties with a value of around €4.7 billion.
Mind Fund and other investors
Animoca Brands has also entered into convertible note agreements with Mind Fund and other investors for an additional US$2.1 million on substantially similar terms as those outlined above for M7 Asia, except without an obligation for payment of interest until the maturity dates of those notes.
Mind Fund is a global venture capital company that has invested in several companies in the United States and Asia.
Most notably, Mind Fund is an investor in Bytedance, one of the most valuable startup companies in the world with a reported valuation of over US$100 billion as of May 2020 and is an investor in Hedera Hashgraph.
Mind Fund also has an institutional partnership with Tokyo and San Francisco-based Digital Garage (TYO:4819) to collaborate and co-invest in a Global Incubation Stream of world-class entrepreneurial companies.
Mind Fund partner Adam Lindemann said: “We at Mind Fund are excited to continue our partnership with Animoca Brands.
"We believe deeply in the company’s vision to use blockchain to build economies where true digital ownership in games and virtual worlds will become a reality for hundreds of millions of people.”