SYDNEY, June 14, 2016 /PRNewswire/ --
- Chapmans special purpose subsidiary COL invests A$5m for a 9.76% holding post raise in breakthrough gaming business Fantasy Sports Global Limited (FSG) with significant international market opportunities
- Ho Family Investment - Prominent global gaming investor and operator, the Ho Family from Hong Kong and Macao invest A$5.425m for a 10.59% post raise interest in FSG with plans to access and expand FSG's penetration into the large and highly active Chinese market
The Directors of Chapmans Limited (ASX: CHP) (Chapmans, the Company) are pleased to announce that subsidiary, Chapmans Opportunities Limited (COL), has taken a strategic A$5 million in emerging mobile and online sports gaming business Fantasy Sports Global Limited (FSG).
FSG is an Australian-based sports technology company focused on the development and operation of state-of-the-art fantasy sports gaming platforms. 'Fantasy Sports' are online games where participants assemble imaginary or virtual teams of real players of a professional sport, and is a rapidly growing multibillion-dollar global industry.
COL has acquired $5 million of ordinary shares in FSG for an initial equity holding of 9.76% post raise in FSG (48,543,689 shares) with an option to invest a further A$5 million as part of FSG's A$20 million Series B Placement Offer.
FSG has also entered into an exclusive mandate with CHP under which CHP is to provide strategic corporate advice to FSG including the commercial structuring and development of FSG's product offering into international markets including China, India, Europe and the United States. CHP is also advising FSG on a proposed ASX listing of FSG anticipated to be undertaken within 12 months.
Ho Family Investment and Plans for Chinese Market
Co-investing alongside COL is prominent Hong Kong-based business and gaming family, the Ho family who through their investment entity Ruby Charm Investment Limited have subscribed for 52,699,903 shares under the Placement representing an initial investment of A$5.425 million. FSG intends to enter into a strategic commercial agreement under which the Ho family interests will play a key role in gaining regulatory approvals, market access and development to drive the growth of the business in mainland China and other Special Administrative Regions (SAR's) including Macao and Hong Kong.
FSG has developed a suite of fantasy sports platforms, including Business-to-Consumer and Business-to-Business offerings. Its B2B model includes a white-label platform that is customised for use by corporates and big brand advertisers. FSG also has a sophisticated actuarial based player performance and metrics system which provides a complete turnkey database of player statistics to help users select their teams.
These two proprietary features position FSG as a compelling strategic partner for existing global gaming operators who can customise FSG's turnkey data system for expansion into their existing customers for an improved and dynamic product offering and customer experience.
The commercial value of this technology and FSG's B2B strategy is validated by the upcoming release of a tailored Fantasy Sports platform for the Australian arm of one of the world's largest sports betting agencies, with more expected to follow.
"Daily Fantasy Sports is now a sizeable industry which is emerging across the globe and cannot be overlooked. We have chosen to invest in Fantasy Sports Global because they have truly innovated their products to a whole new level. Our investment will fast track a launch into the Chinese market and we are excited to be onboard with Fantasy Sports Global and its dedicated team of staff," says Tommy Ip, a spokesman for Ruby Charm Investment Limited and the Ho Family.
Chapmans Opportunities Limited (COL) is a subsidiary of ASX-listed diversified investment company Chapmans Limited (ASX: CHP). It is an investment entity focused on making non-controlling investments in small to medium Australian companies, predominantly providing active expansion capital in the technology sector. COL plans to seek an ASX-listing in due course.
Chapmans (ASX: CHP) is an ASX listed diversified investment company engaged in special situation investments across a diverse range of industries, with a focus and expertise in the mobile technology sector. It seeks to be an active strategic investor in high growth areas of the market, and to identify and work with emerging high growth companies. The Company's investment philosophy and approach are based on a unique mix of high conviction and special situation features, characterised by advisory and equity investments structured around specific events and assets for both public and large private corporates.