Hong Kong (February 20, 2011) — IMAGI International Holdings Limited, has announced on Friday February 18, 2011 the acquisition of Toon Express Group (“Toon Express”), the manager and owner of, among others, trademarks and character copyrights of popular Chinese animation Pleasant Goat and Big Big Wolf.
IMAGI will settle the initial consideration of HK$814 million by way of a cash payment of HK$330 million, and the remainder by the issuance of 1,382,857,143 consideration shares at HK$0.35 apiece. IMAGI has entered into a subscription agreement with ten investors for the subscription of 1,282,816,000 new shares at HK$0.28 each (the “Subscription”), raising gross proceeds of approximately HK$359 million to fund the cash payment of the initial consideration. In addition, IMAGI may pay an earn-out payment of up to HK$232.5 million in the form of promissory notes in accordance with the financial performance of Toon Express in 2011 and 2012. Therefore, the total consideration may increase to HK$1,046.5 million.
IMAGI’s chairman Francis Leung Pak To said, “We are very excited with the acquisition of Toon Express, a leading brand manager in China’s animation industry. Toon Express’ core business is development and management of animation brands and consumer products licensing, capitalising on a group of well-known brands and cartoon characters across multiple distribution channels in the PRC. The acquisition enables the Company to tap into the fast growing animation business in