Songcheng International buys SPACES shares and forces VR to become the second largest external strategic shareholder

Under fierce competition, many theme parks have launched new technologies. Songcheng Performing Arts announced on December 21 that its wholly-owned subsidiaries Songcheng Performing Arts International Development Co., Ltd. and Hangzhou Songcheng Technology Development Co., Ltd. signed "Preferred Stock Equity Purchase Agreement" and "Main Development Agreement" respectively with SABH's Big Adventure Inc. on December 15.

Original title: Songcheng International purchases SPACES shares to launch VR

Under fierce competition, many theme parks are launching new technologies. Songcheng Performing Arts announced on December 21 that its wholly-owned subsidiaries Songcheng Performing Arts International Development Co., Ltd.(hereinafter referred to as "Songcheng International") and Hangzhou Songcheng Technology Development Co., Ltd.(hereinafter referred to as "Songcheng Technology") were on December 15, respectively. (hereinafter referred to as "SPACES") signed the "Preferred Stock Purchase Agreement" and the "Main Development Agreement". Among them, SPACES, subscribed through Songcheng International, plans to issue preferred shares with a subscription amount of more than 28 million yuan (approximately 4.1 million US dollars) to boost the VR business.

It is reported that Songcheng International plays the leading role in this subscription. According to the agreement, the purchase payment must be completed before April 1, 2017. After the completion of this subscription, Songcheng Performing Arts will hold 11.23% of SPACES. Other companies participating in the investment include Youku Frontier Technology Fund, Huayan Capital and Comcast. What is more noteworthy is that Songcheng International will become the second largest external strategic shareholder of SPACES.

The announcement shows that the funds subscribed will be used by SPACES to expand corporate channels and businesses and optimize projects in emerging technology fields such as VR and MR. Songcheng Technology will also cooperate with SPACES on technical aspects such as VR, AR, MR and 360-degree experience projects. At the same time, it plans to establish a joint venture company on this series of businesses to jointly promote creation, development and operations in China. The joint venture company is funded by Songcheng Performing Arts by RMB 160 million, accounting for 80% of the shares, and SPACES uses technical authorization to contribute 20% of the shares.

Songcheng Performing Arts said that this investment is to cater to the current craze caused by VR technology in the commercial market. More and more users recognize the special experience brought by VR and related technologies. For companies such as Songcheng Performing Arts that focus on performing arts and cultural experience, this is an opportunity to deepen new entertainment experience methods.

Editor: yvette