- Vividthree to subscribe for convertible loan notes of up to $4.08 million in GammaR; loan to be disbursed in tranches
- Vividthree has option to convert loan notes into a controlling equity stake in GammaR at any time over three-year period
- Stake in GammaR will allow Vividthree to capitalise on recent surge in popularity of NFT blockchain games
Singapore, Jan 5, 2022 - Vividthree Holdings Ltd. ("Vividthree", the "Company", or together with its subsidiaries, the "Group"), a diversified entertainment company specialising in the production of immersive experiences with mixed technologies, announced today that it will deepen its push into the NFT (Non-Fungible Token) gaming sector by investing in GammaR Pte. Ltd. ("GammaR"), a company incorporated in Singapore.
The Group has entered into an agreement to subscribe for convertible loan notes ("Loan Notes") of up to $4.08 million in GammaR, at an interest rate of 3.5 per cent per annum for a period of three years from the date of disbursement. Vivivthree has the option to convert the Loan Notes into a controlling equity stake in GammaR at any time over this period.
The Loan is expected to be funded through the Group's internal resources, and if required, an additional fund-raising exercise. In the event of a default, the Loan Note will be redeemed immediately at the principal amount, together with all interest accrued. GammaR intends to provide small game developers with the platform and resources to develop and monetise their ideas and innovations in the market, while riding the recent surge in popularity of digital assets, NFTs and the metaverse.
The gaming and gamification company is established by Jonathan Zhang, and supported by a team who hails from various backgrounds, including digital business, blockchain technology and mobile gaming. After starting his career in the financial services industry, Zhang held senior management positions across industries in both public and private companies, before founding GammaR.
Blockchain games have seen a surge in popularity, partly due to the ongoing Covid-19 pandemic. According to data compiled by Blockchain Game Alliance (BGA) 1 , NFT games generated US$2.32 billion (S$3.2 billion) in revenue in the third quarter, accounting for an estimated 22 per cent of all NFT trading volumes industry-wide during the period, as blockchain games gathered steam.
As part of its long-term strategy to beef up its library of intellectual properties ("IPs"), Vividthree has been exploring opportunities in the fast-growing gaming sector to boost revenue streams. The Group's infrastructure and expertise in content production, IP management, and ability to scale concepts into reality through MICE activities, are key drivers that enable it to leverage on accelerating growth in the global gaming industry.
Managing Director of Vividthree, Mr Charles Yeo, said, "We are pleased to announce our partnership with GammaR, which will provide us with a source of gaming IPs as well as opportunities to leverage the rising popularity of NFT blockchain games. Through this investment, Vividthree is well-placed to capitalise on the rapid growth of the global gaming industry in general, and surging interest in NFT and blockchain games in particular."
Mr Jonathan Zhang, Founder and CEO of GammaR, said, "My team and I are delighted to unveil our collaboration with Vividthree. We recognise Vividthree's regional track record in content production, intellectual property and ability to scale concepts into reality through MICE activities. The synergies between our teams will surely birth exciting times ahead."