[September 30, 2016] |
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Digital Domain Introduces CITIC Limited and SoftBank China Venture Capital as Strategic Investors
Digital Domain Holdings Limited (the "Company" or "Digital
Domain"; SEHK 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, announced today that the Company has
introduced CITIC Limited ("CITIC") and SoftBank China Venture Capital
("SBCVC") as strategic investors of the Company by acquisition of
convertible notes and subscription of new shares.
On 30 September 2016, CITIC, SBCVC and [a private investor (Zheng Hao
Investments Limited ("Zheng Hao"))] acquired the convertible notes in
the principal amount of HK$[84] million, HK$[84] million and HK$[22.512]
million, respectively from Harmony Energy Limited, holder of convertible
notes issued by the Company in the principal amount of HK$190.512
million. Immediately after full conversion of the above-mentioned
convertible notes, CITIC, SBCVC and Zheng Hao will hold [2,100,000,000
shares], [2,100,000,000 shares], [562,800,000 shares] respectively and
represent approximately [9.69%], [9.69%], [2.60%] of the issued share
capital of the Company as enlarged by the conversion of all convertible
notes issued by the Company respectively.
Digital Domain also entered into subscription agreements with CITIC and
SBCVC (together referred to as "subscribers") respectively, under which
the Company has conditionally agreed to allot and issue an aggregate of
[363,636,304] shares to the subscribers and/or their respective nominees
at a subscription price of HK$[0.55] per share. The subscription shares
represent approximately [3.06%] of the existing issued share capital of
the Company of [11,877,709,220] shares and approximately [2.97%] of the
issued share capital of the Company of 12,241,345,584 shares as enlarged
by the subscription. The subscription price represents a discount of
approximately 9.84% to the closing price of HK$0.61 per share on 30
September 2016.
The net proceeds raised from the subscription will be approximately
HK$[199,850,000] million, and are intended to be applied towards media
entertainment segment and used for general working capital purposes of
the Group.
CITIC and SBCVC have also undertaken to the Company pursuant to the
subscription agreements that each shall agree to the extension of the
maturity date of the convertible notes by no more than five years.
With 23 years of history and a legacy of bringing revolutionary change
to the global visual effects industry, Digital Domain advocates in the
exploration of virtual reality (VR) and virtual human (VH) technologies
as the Company's key business development. Digital Domain is the only
company in the world fully capable of bridging powerful computer graphic
imagery creation and 360-shooting hardware and software to create a
unique VR universe of Digital Domain that influences every aspect of
life. The Company has collaborated with numerous multinational
corporations and renowned global organizations in the international
business including DreamWorks Animation and Democratic National
Convention Committee, while officially expanding its business to the
Greater China market in 2016 through acquisition of Post Production
Office, thereafter renamed as DDPO, and conclusion of strategic
partnerships with media and entertainment industry giants in the region
including Youku, Warner Music, and CTi TV. The Company aims to create
the latest, the most exciting and the most authenic VR and intellectual
property (IP) contents for the world's entertainment industry riding on
its leading position in the global entertainment industry,
Hollywood-caliber VR technology and talents.
Mr. Daniel Seah, Executive Director and Chief Executive Officer of
Digital Domain Holdings Limited, said, "As Digital Domain's
footprint broadens, we are always looking for opportunities to grow our
media and entertainment business and further penetrate the VR market.
The introduction of strategic investors into the Company not only
represents their confidence in Digital Domain's solid business
foundation, sound strategy and robust potential, but also offers Digital
Domain additional funds, increasing our capital base for future business
development. Combining CITIC's abundant global resources and SBCVC's
vision and experience in technology, media and telecom investments with
Digital Domain's top-notch technology and dedicated management team, 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."
Mr. Pu Jian, Executive Director of CITIC Limited, said, "We are
happy to ink a partnership with Digital Domain to develop virtual
reality and related technology via the share subscription. We recognize
the potential of VR development globally, particularly in the Greater
China market, and Digital Domain's industry-leading VR and IP content
creation capabilities make it a good partner to tap the VR market
worldwide."
"We are very impressed by the vision and energy of the professional
management team led by Daniel. As a proven leader in the global
entertainment industry with Hollywood-caliber VR technology and talent,
we see immense growth potential in the company. We are confident in the
leadership of Daniel and his management team to realise the Company's
strategic potential, and is therefore happy to be able to play a part in
its growth," said Dr. Alan Song, Managing Partner of SoftBank China
Venture Capital, a renowned TMT focused venture capital and private
equity firm investing in high-tech and high growth companies in the
Greater China Region.
About Digital Domain
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 that 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 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
About CITIC
CITIC Limited is China's largest conglomerates operating domestically
and overseas. With businesses in financial services, resources and
energy, manufacturing, engineering contracting and real estate as well
as others. CITIC's rich history, diverse platform and strong corporate
culture across all businesses, ensure that CITIC Limited is unrivalled
in capturing opportunities arising from China's continued growth. CITIC
Limited is listed on the Stock Exchange of Hong Kong (SEHK:267) where it
is a constituent of the Hang Seng Index. CITIC Group, a Chinese state
owned enterprise, owns 58% of CITIC Limited.
Corporate Website: www.citic.com
About SBCVC
Established in 2000, SoftBank China Capital (SBCVC) is a leading venture
capital and private equity firm that manages both USD and RMB funds.
SBCVC's investment focuses on high-tech, high growth companies in TMT,
clean technology, healthcare, consumer/retail, and advanced
manufacturing sectors; and SBCVC invest across all stages of companies.
SBCVC has a proven track record and solid reputation in identifying high
potential start-ups and creating successful industry-leading companies.
Some of SBCVC spotlight portfolio companies are Alibaba, Taobao, Focus
Media, GDS, Shenwu, Precise, Di'an, and Edan. SBCVC has operational
offices located in Shanghai, Beijing, Tianjin, Suzhou, Chongqing,
Chengdu, Xi'an, Hangzhou, Nanjing, Shenzhen, Singapore, Hong Kong and
Taiwan.
Corporate Website: www.sbcvc.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20160930005923/en/
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