Sanqi Mutual Entertainment invests 20.62 million yuan in Canadian VR game companies to enter the VR field

Sanqi Interactive announced on March 7 that the company will use its subsidiary controlled company Zhimei Network Technology Co., Ltd.(Zhimei Network) as the investment entity, and will cooperate with Canadian VR game content provider Archiact Interactive Ltd. (Archiact) signed the investment agreement. Zhimei Network will use its own funds to invest a total of US$3.1667 million in Archiact, subscribe for 6.8465 million ordinary shares of the target company, and obtain a 10% equity after the capital increase is completed.

Sanqi Interactive announced on March 7 that the company will use its subsidiary controlled company Zhimei Network Technology Co., Ltd.(Zhimei Network) as the investment entity, and will cooperate with Canadian VR game content provider Archiact Interactive Ltd. (Archiact) signed the investment agreement. Zhimei Network will use its own funds to invest a total of US$3.1667 million (approximately RMB 20.6197 million) in Archiact, subscribe for 6.8465 million ordinary shares of the target company, and obtain a 10% equity after the capital increase is completed. After the investment is completed, Sanqi Mutual Entertainment will appoint one director to participate in Archiact's operation and management.

It is understood that Archiact was founded in Vancouver, Canada in 2013 and is committed to developing high-quality VR products. It currently has a R & D team of more than 40 people. Sanqi Mutual Entertainment said that Archiact has a close relationship with Oculus and Google's VR development team. Its independently developed many of the world's top VR game content such as "Lamper VR: First Flight","Lamper VR: Firefly Rescue","Waddle Home", etc., have been recommended by the Google Play Store and Samsung Gear VR Oculus Store many times. The company revealed that Archiact has signed up for more than a dozen high-quality European and American VR game content, including the Oculus store's best-selling game "DarkNet", which will be exclusively distributed in China or the Asia-Pacific region. At the same time, Archiact is also the organizer of the Canadian VR Consumer Forum and Exhibition CVR, the provider of VR content for Canada's 150th National Day, and has held many North American VR Game Developer Competitions, bringing a variety of VR games to the early VR market.

Financial data shows that Archiact achieved total operating income of US$351,900 and US$318,200 in 2015 and January-February 2016 respectively; net profit was US$622,000 and US$46,500 respectively. Archiact was valued at $28.5 million before the investment.

Sanqi Mutual Entertainment said that Archiact is an early VR game content developer to enter this market, and has VR-related talent reserves, technical reserves, and overseas high-quality VR game distribution agency capabilities. VR entertainment is the company's key development sector in the future. The company will enter the VR field by investing in Archiact this time. At present, the VR game field at home and abroad is still in its infancy, with few mature products. By investing in Archiact, which has complete experience in VR game production, the company will further improve the layout of upstream VR game developers and bring new opportunities to the excellent IP resources reserved by the company. The possibility of expression form.

[Original Announcement]

Sanqi Mutual Entertainment: Announcement on Foreign Investment

Editor: vian