Digital Domain Acquires from Micoy Portfolio of Patents on Interactive Entertainment Technology
VR Capabilities Further Enhanced and Synergy Created with Existing Businesses
(30 October, 2016 – Hong Kong) Digital Domain Holdings Limited (the “Company” or “Digital Domain”; stock code: 547), creator and proprietor of visual effects content and the parent company of the award-winning visual effects company Digital Domain 3.0, is pleased to announce that the Company has entered into an agreement with Nevada-based Micoy Corporation in the USA to acquire from the latter all its intellectual properties covering a portfolio of patents in relation to its interactive entertainment technology business and related trademarks at an aggregate consideration of US$5,500,000.
These intellectual properties include but not limited to stereoscopic panoramic image capture, spherical stereoscopic photographing, multi-dimensional imaging, image capture, processing and display.
Of the aggregate consideration, US$1,000,000 will be paid in cash by utilizing the Group’s available internal resources. The remaining US$4,500,000 will be satisfied by the issue and allotment of 57,172,131 Consideration Shares at an issue price of HK$0.61 per share in four tranches within a three-year period. The Consideration Shares represent approximately 0.46% of the existing number of shares in issue and approximately 0.46% of the total number of shares in issue as enlarged by the issue of the Consideration Shares.
The issue price for the Consideration Shares of HK$0.61 represents a 1.67% premium over the closing price of HK$0.60 per share on 28 October, 2016, and a 2.87% discount to the average closing price of HK$0.628 per share for the last five consecutive trading days prior to the date of the announcement.
Daniel Seah, Executive Director and Chief Executive Officer of Digital Domain Holdings Limited, said “We are thrilled to announce the acquisition from Micoy a portfolio of patents related to interactive entertainment technology, which represents a great stride Digital Domain has made in heightening its immersive VR capabilities. We are confident that by combining the strength of Micoy’s immersive 3D technology and the technological advantages of our other brands, we are set to expedite our rapid growth on the back of the tremendous synergies to be created with the Company’s existing businesses, scaling further our leading position in the VR technology market in the world. As such, we are committed to developing more VR content and creating breakthrough VR experiences for the marketplace.”
Engaged in technology development and acquisition in the areas of interactive entertainment, Micoy Corporation is an award-winning research and technology company focused on the development of immersive 3D environments and image formats. With breakthrough patents in the creation of panoramic 3D digital imagery, Micoy has developed what most consider the beginning of the “Holodeck” and the future of virtual experiences.
After completing the acquisition, Digital Domain will be among the top five patent holding companies in the world in terms of number of patents owned on panoramic, equirectangular, spherical, 360o and 3D imaging hardware and software.
As part of the acquisition deal, Micoy and its chief executive officer Mr. Don Pierce will enter into a restrictive convenants agreement with Digital Domain under which they will not compete with the Company in the business of developing, acquiring, commercializing and exploiting technologies relating to interactive entertainment for a period of five years after completion of the acquisition.
Furthermore, Digital Domain will also enter into an option agreement with Micoy, under which Digital Domain will be granted an option to purchase Micoy’s 50% equity interest in Micoy Entertainment, LLC, a company engaged in the business of exploiting and commercializing immersive three-dimensional dome technology, exercisable within three years of completion of the acquisition.
About Digital Domain Holdings Limited
Digital Domain Holdings Limited (“DDHL”, together with its subsidiaries, the “Group”) is listed on the Main Board of The Stock Exchange of Hong Kong Limited (stock code: 547). DDHL is a diversified investment holding company with its operating and investment businesses spanning Hong Kong, the United States, Canada, mainland China and other countries, encompassing businesses such as media entertainment, visual effects production, co-production of movies, property investment, and trading.
In July 2013, the Group acquired Digital Domain 3.0 Group comprising Digital Domain 3.0, Inc., Digital Domain Productions 3.0 (BC), Ltd. and Mothership Media, Inc.. Digital Domain 3.0 Group has a history of over 20 years and has manifested itself as the leading digital production company mainly engaged in the production of VFX, animations and movies. DDHL is also currently focused on building a library of live/recorded 360o content through its subsidiaries, Immersive Ventures Inc. and IM360 Entertainment Inc. so as to build and grow virtual reality technology (including the 360 o digital capture technology) in the mainstream media and entertainment fields.
DDHL has also strengthened its VFX and post-production services in Greater China through the acquisition of Post Production Office Limited (“PO”) in April 2016. Founded by global renowned entertainment icon Mr. Nicholas Tse, PO is engaged in the provision of post-production services for films, TV shows, advertisements, mobile apps, online games, micro-films and animations. The Group also completed the acquisition of Digital Domain 3.0’s stake from Prime Focus Limited in June 2016, giving DDHL sole ownership of the visual effects house. DDHL and Prime Focus also plan to provide post production and visual effects services to the advertising, animation and virtual reality industry.
Corporate Website: www.ddhl.com