A substantial shareholder of Amax International Holdings has questioned the casino investor about its recent acquisition of AR/VR technology business, Explicitly Grand Investment Ltd in July.
According to a filing from Amax on Wednesday, Shen Nan (Macao) Investment Co. Ltd, which holds 11 percent of the company, raised certain concerns regarding the acquisition, and has requested for further information in connection to the deal.
Shen Nan (Macao) Investment Co. Lt, through its legal representative, accused Amax for not having any “apparent commercial reason” for the acquisition, and also argued that Amax had failed to explain a connection between the operations of casino gambling and AR/VR technology. It also said that Amax did not enough information to shareholders to make an informed assessment on the acquisition.
Amax in its filing said that the acquisition would enable the group to equip the latest AR/VR technologies and research capabilities, and in the long run, as part of its strategy to leverage on its expertise in the casino and entertainment business, to seize the opportunity to expand the group’s entertainment business in the AR/VR apps and entertainment platforms.
It stressed that both Amax and Explicitly Grand Investment does no intention or plan to launch any VR/AR casino games through any land-based or online casino.
Amax did however, say that the acquisition would enable the company to expand its business to the simulation casino gambling with AR/VR technology.