SINGAPORE (Aug 30): Vividthree Holdings (VVH), the visual effects studio 51% owned by mm2 Asia, on Wednesday lodged its preliminary offer document for the proposed spinoff and listing on the Catalist Board.

See: mm2 Asia posts 13.2% increase in 1Q earnings to $7.3 mil

Proceeds from the sale of new shares will be used to create VR (virtual reality content) and immersive media, develop or acquire intellectual property and expand via acquisition, joint ventures or strategic alliances.

The lodgement follows a restructuring agreement entered into on Monday between mm2 Asia's unit mm2 Entertainment and four individual shareholders of Vividthree Productions (VVP) with VVH.

mm2 Entertainment and the four shareholders will transfer their entire stake in VVP to VVH for a consideration of $50,000 or 49,700 new shares at about $1.006 each.

Once the restructuring is completed, mm2 Entertainment will cease to be a shareholder of VVP, which in turn, will be a wholly owned subsidiary of VVH and an indirect subsidiary of mm2 Asia.

In its last fiscal year ended March, VVH reported a net profit and revenue of $2.71 million and $7.06 million respectively.

Hong Leong Finance is the sponsor, issue manager and placement agent for VVH’s listing.

As at 10.25am, shares in mm2 Asia are down 0.5 cent at 40 cents.