Live Company Group PLC (LON:LVCG) said it has acquired a 16.3% stake in Start Art Global Ltd, an online and digital art sales platform that it said also had the potential for the creation of non-fungible tokens (NFTs).
The media group Smart Art, a private company due to launch at the end of June, currently has fifty artists signed up, including K-Pop stars, and plans to have 100 artists signed up by its ‘go live’ date with revenue generation commencing from the third quarter of 2021.
WATCH: Live Company Group to take minority stake in Start Art Global Ltd
Live Company added that it will have contracts with three K-Pop artists with significant social media and fan followings to sell their art and limited edition prints on the go live date and that there will also be a line of merchandise featuring the K-Pop artists' works which will be available for sale on the platform from the launch date.
The firm said it will acquire its minority stake in Start Art for £1mln in cash, which it plans to fund through a share placing of new shares at a price of 5p each, a 13.8% discount to its closing price last Friday, to raise a total of £1.5mln.
Live Company said £1mln of the proceeds will fund the acquisition while the remaining £500,000 will be used as working capital for its existing businesses.
"We have spent the past year of lockdown both restructuring our existing business, launching a new sports and entertainment division and exploring opportunities in complementary businesses less affected by COVID. Today marks an acquisition in a very exciting space which encompasses both celebrity art and the world of NFTs,” Live Company chairman David Ciclitira said in a statement.
“In addition, the last few months have seen a resurgence of opportunities in our existing business which has meant that we will look to recommence our Bricklive build programme to keep up with demand in the UK, USA and China while of course maintaining our strategy of only building when this demand dictates. The raising of additional working capital and introduction of institutional clients into the register will leave the company in a stronger position. I remain absolutely committed to the group and excited for the future of our core BrickLive business, recently established sports and entertainment division and this new on-line art investment," he added.