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
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.
Gamma application
Gamma offers a PC software application that allows users to leverage their computers’ idle processing power to generate Gamma Points while mining for Ether and collects 50% of the value of tokens mined.
Users receive Razer loyalty credits called Razer Silver. Gamma has a commercial relationship with Razer, giving it a potential audience of 60 million Razer users, consisting primarily of gamers.
Gamma’s software has in excess of 35,000 unique active users.
The earn-out obligations involved with Animoca's purchase in 2019 will be transferred to RightBridge Ventures on completion of the sale.
RightBridge Ventures
RightBridge Ventures is an investment company based in Stockholm in Sweden.
It focuses on investing in companies that shape the future of e-sports and gaming as part of the digital entertainment industry.