SINGAPORE (Feb 12): Vividthree Holdings, plans to raise at least $2 million in gross proceeds by issuing 15.88 million new shares priced at a minimum 12.6 cents each.
Soochow CSSD Capital Markets (Asia) has been appointed the placement agent.
According to Vividthree in a Feb 12 filing, it plans to use 30% of the proceeds to acquire new intellectual property rights; and the remaining 70% to be used for general working capital.
Just one day, earlier, Vividthree announced plans to pay $1.5 million for the intellectual property rights of a comic title, Silent Horror.
Under terms of the deal, the two sellers, Goh Chun Hoong and Goh Chun Keong, will receive in total cash of $0.5 million, and the remaining $1 million in the form of new Vividthree shares.
‘Silent Horror’ is a webcomic series with a supernatural horror theme and has amassed over 92 million views online since February 2015. 
“The proposed transaction is in line with Vividthree’s intention to extend its IP ownership in the comic video mass market,” said the company on Feb 11.
Charles Yeo, managing director of Vividthree, calls this acquisition a “potential game-changer”.  
“By tapping on our post-production and content production capabilities, we want to bring ‘Silent Horror’ to an even wider audience via our OTT comic video platform. Moving forth, we will continue to strengthen our competitive edge to meet the increasing consumer demand in the region,” he added.
Upon completion of the placement, Vividthree’s total share base will increase from 334,011,764 shares to 349,891,764 shares.
The placement at 12.6 cents is a premium of 27.3% over the volume weighted average price of 9.9 cents on Feb 12. At this level, Vividthree is valued at $33.07 million.