iCandy Interactive shares rally on new major shareholder

Shares were issued as part of a $4 million equity component of an acquisition.

big fish eating a smaller fish representing acquisition concept

The total acquisition payment was $5 million, $1 million cash and $4 million equity

iCandy Interactive Ltd (ASX:ICI) is trading 28% higher this morning after revealing that Animoca Brands Limited has a 8.3% stake in the company.

Animoca Brands Ltd (ASX:AB1) is a leading global developer and publisher of mobile games and e-books based on globally popular brands.

These brands include MasterChef, HotWheels, Garfield, Thomas and Friends, and Astro Boy to name a few.

iCandy develops mobile phone games

iCandy’s core business is developing and publishing mobile games and digital entertainment for a global audience.

It runs multiple game studios and is one of the leading mobile entertainment groups in Southeast Asia with over 25 million unique gamers on its network.

Top games made by iCandy include Light A Way, Crab War, Alien Path, Star Tap and Dark Dot.

Shares issued for acquisition of Animoca’s game portfolio

iCandy issued 25 million shares, representing an 8.3% stake to Animoca for the acquisition of their game portfolio.

The shares were issued at 16 cents per share.

As detailed in November 2017, iCandy acquired Animoca’s game portfolio and its audience of 325 million gamers, which will add to the existing audience of 25 miexisting iCandy gamers.

The total consideration to be paid to Animoca under the agreement is $5 million, with $1 million payable in cash and $4 million payable in equity.