Amax International Holdings said it agreed to buy mobile games apps for a total consideration of $27 million to tap into the booming mobile market.
The casino investor will issue consideration shares at a prices of $0.045 each to the vendors, who were named as Patrick Wah Poon and Ng Wing Ki Kristy. The price was a discount of almost 16 percent to the close on the day before the announcement.
The Mobile Games Apps comprise of 30 offline mobile game apps which cover the areas of leisure and entertainment; (education and intellectual; sport; and adventures, the company said in a filing with the Hong Kong Stock Exchange.
“Given the rapid growing of the global mobile gaming market, the board sees huge potential on the mobile games business. Upon completion, the company will be able to leverage on its expertise in the gaming and entertainment-related businesses to diversify the business of the company to capture the enormous potentials under the mobile age,” it said.
Upon completion of the acquisition, the company will launch the Mobile Game Apps via various well-known third-party digital distribution platforms. Players will need to purchase virtual tokens via the distribution platforms. Proceeds from the sale of the virtual tokens, after deducting commission and other expenses payable, will represent the net revenue generated from the Mobile Game Apps.
The company, which owns a 24.8 percent equity interest in Greek Mythology Casino in Macau, has been seeking to diversify its business following the slump in the territory’s VIP business.
In May last year, the group was granted regulatory approval to begin an online gaming business in Vanuatu.