iCandy investee company RightBridge books material valuation uplift through a strategic share placement
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In a positive end to a big year the investee company of iCandy has undertaken a successful private placement to fund its IPO plans for 2022.
Investee company of ASX-listed games developer iCandy Interactive (ASX:ICI) Swedish incorporated RightBridge Ventures AB (RightBridge) has raised SEK 5 million (A$770,000) through a private placement.
The placement of 3.2% RightBridge shares to Blue Horizon Investment ApS (Blue Horizon), values RightBridge at ~SEK 150 million (A$23.1 million), a significant upward valuation.
Blue Horizon is a Danish investment company which is among the pioneers of casual mobile gaming, with an impressive portfolio of leading clients such as Sony Ericsson and Nokia.
Among its investments include esports Team Singularity, which has a presence in all major esports titles and leagues in Europe and America, delivering more than 160 million monthly impressions.
Blue Horizon has also invested in iGaming technology and content provider LadyLuck Games, which recently successfully listed on the Nasdaq First North Growth Market, marking the second successful iGaming listing by Blue Horizon.
RightBridge will use proceeds from the Blue Horizon placement to close several transactions and towards finalising its IPO on a major Swedish stock exchange within the first quarter of 2022.
Following completion of a share exchange with RightBridge from the divestment of iCandy Digital Pte Ltd, iCandy owns more than 17 million shares in RightBridge. iCandy also has the option to acquire a further ~2 million additional RightBridge shares.
2021 has been a big year for iCandy, moving to establish a strong foothold in the global gaming industry – forecast to be worth $360bn by 2025.
The company has just completed a monster $40m capital raise, which was heavily oversubscribed by sophisticated investors.
The placement was carried out through two tranches at 11.5c and was backed by a $10m cornerstone investment from existing iCandy shareholder Animoca Brands, a global leader in blockchain gaming, non-fungible tokens (NFT) and the ‘metaverse’.
iCandy has been focused on leveraging the IP it has built from its two successful game launches to consolidate its user growth and revenue metrics.
iCandy turned heads in the market in 2020 when its Masketeers: Idle has Fallen title generated $1 million in revenue in just two months post-release.
It followed that up with its popular Claw Stars title, which also got off to a strong start with $300k of in-game revenue in its first two weeks in July.
Money raised from the latest capital raise was used for iCandy’s purchase of Malaysian-based Lemon Sky Studios – a tier-one developer of AAA games that has longstanding partnerships with several of the world’s biggest industry players.
iCandy last month signed a MYR 135 million (~$44.5 million) sale agreement to acquire 100% of shares in Lemon Sky Studios.
The combined entity will form one of the largest gaming studios in the Australasia region, with more than 450 full-time employees who are highly skilled in game design, development, game art and animation production.
iCandy signed a ~$1.29m cash and share placement deal in March to acquire Singapore-based developer Nextgamer.io.
The platform specialises in the hyper-casual genre – short games in the mobile category that are simpler to play and master.
This article was developed in collaboration with iCandy Interactive, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.