Animoca Brands and NEOM Forge Strategic Partnership to Advance Web3 Initiatives

Bits Logics Team . 30th Oct 2023

• Animoca Brands Corporation Limited announced today that they have formalized a Strategic Partnership MOU with NEOM.
• Under this agreement, NEOM Investment Fund plans to invest $50 million in Animoca Brands. 
• Animoca Brands will collaborate with NEOM to establish Web3 enterprise service capabilities with global commercial applicability.

Animoca Brands Corporation Limited, a company that offers digital property rights for the open metaverse, announced today that they have formalized a Strategic Partnership Memorandum of Understanding (MOU) with NEOM Company (NEOM) to propel regional Web3 initiatives in alignment with the Saudi Vision 2030 plan.

In conjunction with this Strategic Partnership, Animoca Brands and NEOM Investment Fund have inked a Convertible Notes Financing Term Sheet. According to the announcement, under this agreement, NEOM Investment Fund plans to invest $50 million in Animoca Brands. 

Out of this sum, $25 million will be via convertible notes at a conversion cap price of A$4.50 per share, mirroring the terms outlined in Animoca Brands’ previous strategic funding round disclosed in the announcement of 8 September 2022. The remaining $25 million will be invested in purchasing the Company’s shares on the secondary market.

As part of this collaboration, Animoca Brands will collaborate with NEOM to establish Web3 enterprise service capabilities with global commercial applicability. These initiatives are poised to bolster technological advancements in Riyadh and the NEOM region. The projects in the pipeline include setting up a hub within NEOM to cultivate the local Web3 ecosystem. Animoca Brands will leverage its capabilities, subsidiaries, partners, and diverse portfolio of investments to support these initiatives.

The finalization of definitive documents for the Convertible Notes Financing remains contingent on several conditions precedent.

Expressing his enthusiasm about the partnership, Majid Mufti, CEO of NEOM Investment Fund, stated, “We are excited to partner with Animoca Brands to support the development of NEOM’s digital infrastructure.” “Web3 technology and infrastructure development will not only be an important foundation of NEOM’s tech stack and architecture but also has the potential to revolutionize global industries. By partnering with a market-leading company like Animoca Brands, we hope to accelerate Web3 technology development and adoption.”

Yat Siu, the co-founder, and executive chairman of Animoca Brands further exclaimed, “We are honored and excited to partner with and receive investment from NEOM, one of the world’s most ambitious projects seeking to use innovation and technology to redefine how we live, work, and play.” “We have always referred to the growth of the Web3 ecosystem as the emergence of a new meta-nation, and now NEOM could well become the first region to fully harness the power of blockchain.”