Southeast Asian games distributor Epicsoft Asia, a subsidiary of Grand Centrex Limited (dba GCL Asia) has signed a Memorandum of Understanding (MoU) with Wan Xin Culture Technology Company, a subsidiary of Chinese conglomerate Wan Xin Media Group. This MoU marks the beginning of an anticipated five-year collaboration to jointly allocate over USD 100 million to investment in intellectual property (IP) creation, game development, publishing opportunities exploration, and game studio acquisitions.
GCL Asia last October announced a definitive business combination agreement with RF Acquisition at a $1.2 billion pre-transaction equity value. If approved, at closing the combined company is expected to be listed on the Nasdaq under the reserved ticker symbol GCL.
The anticipated joint investment under the MoU will provide Wan Xin access to GCL Asia’s extensive network of publishing partners, including its subsidiary, 4Divinity, and forthcoming game IPs, to achieve co-publishing targets. The result will be enhanced capabilities for both parties to manage larger titles globally and foster content creation within emerging game studios worldwide.
The funding will also allow GCL Asia and Wan Xin to invest in high-potential game studios worldwide that are seeking to launch their upcoming titles in the fast-growing Asian market.
Terms of the SPAC deal call for GCL’s existing shareholders to roll over 100% of their equity and control a majority of the combined company, while GCL will also designate a majority of the board of directors.
The deal includes a minimum cash condition of $25 million and is expected to result in GCL receiving gross proceeds of approximately $42.9 million, assuming no further SPAC share redemptions.
RF Acquisition and GCL have said they will work together to pursue PIPE financing of up to $20 million. Read more.
