Game maker iCandy raises $1.3m but withdraws from plan to build cryptocurrency
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iCandy Interactive has cancelled plans to help build a gaming platform called Nitro that would come complete with its own in-house cryptocurrency called “NOX”.
But the mobile game maker agreed to act as the exclusive games publisher for the platform — for which it would be paid 3 million NOX per year.
iCandy — which had been suspended from trade since September 21 — also yesterday announced a $1.3 million capital raising at 6.5c per share.
Investors applauded the move, pushing iCandy’s (ASX:ICI) shares up 65 per cent to 14c after they resumed trade yesterday.
Cryptocurrency refers to digital money designed to be secure and anonymous. There are about 1000 different types of cryptocurrency — of which BitCoin and Ethereum are the most famous.
The Nitro platform would allow registered users to vote on concepts for new games within a mobile marketplace. The games with the most votes would be built by iCandy with development funded by NOX or Ethereum.
It wasn’t immediately clear how that would work. iCandy has been contacted for comment.
iCandy told investors that “following discussions with the ASX” it would “no longer have any role in the development or management of the proposed cryptocurrency or the Nitro Marketplace as originally contemplated.”
However on Monday, Nitro — which is attempting to raise money through a crowd-funding — was promoting itself itself as “the first cryptocurrency project in the world backed by a publicly listed company”.
Nitro’s website said: “Candy Interactive Limited is a leading Southeast Asia mobile games development company listed on the Australian Securities Exchange. iCandy Interactive will facilitate the development of the Nitro Marketplace and it will make available its resources on an ongoing basis to support the operation of the Nitro Marketplace.”
iCandy told investors: “The publishing arrangement which will see ICI become the exclusive publisher for games titles which are funded and developed through the Nitro Marketplace remains subject to and conditional upon the Nitro Project successfully completing its initial development and phases and subsequently launching the Nitro Marketplace.”
The $1.3 million placement was bought by professional investors, to cover working capital needs and “accelerate potential opportunities to build shareholder value”.
Singapore-based iCandy says its games has been installed 20 million times, and include Crab War, Alien Path, Star Tap and Dark Dot.
iCandy reported a loss of just over $130,000 for the half-year to June on revenue of $619,000. It had $76,000 in the bank at the end of the period.