Animoca Brands Corporation Ltd has raised US$110 million from the issuance of convertible notes to a small number of institutional investors that included Singapore state-owned sovereign fund Temasek, at a conversion price of A$4.50
The company intends to use the new capital to continue funding strategic acquisitions, investments, and product development, secure licences for popular intellectual properties, and generally to advance the open metaverse, including promoting digital property rights for online users.
Animoca Brands co-founder and executive chairman Yat Siu said: “We are incredibly pleased to complete a special strategic round of fundraising comprising several of the most respected institutional investors in the world, and we are honoured by the continued support from existing investors.
“Animoca Brands has grown significantly as a company in the last year, and our new investors will contribute strategic advice and perspective as we build the world’s leading company furthering digital property rights in the Web3 industry.”
Impressive investor line-up
The company advancing digital property rights for the open metaverse said the latest round of capital-raising attracted new investors, Boyu Capital and GGV Capital, and existing investors, Mirae Asset Management and True Global Ventures (TGV).
Boyu Capital is a leading alternative asset management firm based in Asia with more than US$40 billion in assets under management, while GGV Capital is a global venture capital firm focused on seed-to-growth stage investments, with $9.2 billion in capital under management across 17 funds.
Temasek, which had participated in previous funding exercises, had a net portfolio value of US$297 billion as at March 31, 2022.
The new investors will act as advisors to Animoca Brands as it grows its organisational capabilities, including engaging and advising the company on a range of business issues as well as providing input on its business and capital plans.
More money
The company has also issued warrants to the same investors for a total face value of US$55 million on the same conversion price as the notes.
The warrants will expire in the event of one the following:
- 60 days after the date of conversion of the notes;
- the date an IPO or liquidation event is completed, including a sale or merger; or
- three years from the date of issuance of the notes.
Promoting equity
Animoca Brands has established itself as one of the world’s leading technology groups in blockchain and gaming by spearheading and innovating decentralised in-game rewards and monetisation in video games for the emerging open metaverse.
Using technologies including blockchain and NFTs, the company is working to deliver true digital ownership of users’ virtual assets and data, enabling various DeFi and GameFi opportunities, including play-and-earn, asset interoperability, and an open framework that can lead to greater equitability for all participants.