CITIC, SBCVC Bet $50M On Digital Domain And VR

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CITIC, SBCVC Bet $50M On Digital Domain And VR
October 3, 2016

CITIC Ltd. and SB China Capital (SBCVC) have invested HK$190 million (US$24.5 million) in Hong Kong-listed visual effects content producer Digital Domain Holdings Ltd. as strategic investors, the companies announced.
 
The two investment firms and a private investor named Zheng Hao Investments Ltd. acquired HK$84 million, HK$84 million and HK$22.512 million worth of convertible notes issued by Digital Domain, respectively.
 
After full conversion, CITIC, SBCVC and Zheng Hao will hold approximately 9.69%, 9.69%, and 2.60% of the enlarged issued share capital of the company. Digital Domain has aggressively developed its virtual reality capabilities, including graphic imagery creation, 360-shooting hardware and software to create unique virtual reality content.
 
"We are always looking for opportunities to grow our media and entertainment business and further penetrate the VR market," says Daniel Seah, chief executive Oofficer of Digital Domain. "We will continue to leave our mark in global and Greater China markets and strive to become the world's best creator and proprietor of VR content."
 
Digital Domain also agreed with CITIC and SBCVC separately to allot and issue an aggregate of 363 million shares in total at a subscription price of HK$0.55 per share, a discount of approximately 9.84% to the closing price on 30 September 2016.
 
The subscription shares represent approximately 3.06% of the existing issued share capital and approximately 2.97% of the enlarged total share capital. The net proceeds raised from the subscription will be approximately HK$199.9 million (US$26 million), and will be used to expand the company's media entertainment segment and general working capital, according to the announcement.

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