Animoca Brands realises strong value from Gamma Innovations sale in exchange for strategic investment in RightBridge

By Deputy Chief EditorAugust 19, 2020

132 1 minute read

Animoca Brands Corporation Limited has initiated a strategic partnership with Sweden-based investment company RightBridge Ventures AB through the sale of its wholly-owned subsidiary Gamma Innovations Inc.

Under the deal, Animoca Brands will sell the entire issued capital in Gamma Innovations to RightBridge Ventures for US$1 million, in exchange for shares in the investment company.

This deal sees Animoca gain strong value from Gamma Innovations, which was bought for US$350,000 plus earn-out in 2019, with the added benefit of becoming a strategic shareholder of RightBridge Ventures with a fully diluted stake of around 5%.

The transaction is expected to close by August 31, 2020.

Access to Europe and Scandinavia[hhmc]

The partnership between Animoca Brands and RightBridge Ventures will combine Animoca Brands leadership in shaping the evolution of the gaming industry towards mobility, multiplayer networking and true ownership of in-game digital items with RightBridge Ventures expertise in scaling up innovative companies and access to European and Scandinavian capital markets.

RightBridge Ventures is seeking to list on a recognised Swedish exchange, with a listing targeted this year.

Scandinavian capital markets are among the most advanced and knowledgeable about the trends and technologies that shape the e-sport and gaming industry value chains.

The partnership will enable investors to invest, through RightBridge Ventures, in some of the most future-looking industry-shaping initiatives spearheaded by Animoca Brands.

If RightBridge Ventures does not list on a public exchange by the end of the first quarter of 2021, Animoca Brands has the right to terminate the deal and take back ownership of Gamma.

The RightBridge Ventures shares that Animoca Brands is receiving as consideration for the sale of Gamma are subject to a lock-up period ending six months after RightBridge Ventures public listing.