mm2 Asia Enters into MOU to Acquire Substantial Stake in RINGS.TV
mm2 will acquire an initial stake of 15% in the company, with a 12 month option to acquire another 15% at the same valuation
RINGS.TV will target to achieve an IPO in 5 years, and grant a guaranteed investment buyback plus coupon of 5% per annum to mm2 in lieu of IPO
Singapore, 17 October, 2016 – mm2 Asia Ltd. (“mm2 Asia” and together with its subsidiaries, the “Group”), entered into a non-binding Memorandum of Understanding (“MOU”) with RINGS.TV Pte Ltd (“RINGS.TV”) and its holding company, Mozat Pte Ltd today, to acquire up to 30% stake in RINGS.TV for S$4.5 million over 12 months after the binding investment agreement.
Under the terms of the MOU, mm2 Asia will make an initial investment of S$2.25 million to acquire 15% of RINGS.TV, with an option to increase its stake by an additional 15% for another S$2.25 million.
RINGS.TV is Singapore’s first interactive broadcasting technology platform to stream and broadcast live concerts, performances, conferences and other events. They are working with 88.3JIA FM among others to carry out live broadcasts on its platform. The robust technology platform that RINGS.TV provides will complement mm2 Asia’s variety of content, with mm2view to provide both local and regional content.
mm2 Asia will work with RINGS.TV to live broadcast exclusive material from movie productions across the region such as auditions, behind-the-scenes footage and interviews with the cast from movie sets, as well as unlock new revenue streams from concert live-cast, front and backstage, via mm2 Asia’s subsidiary UnUsUaL Group.
Other line ups include live broadcasts of movie and concert artistes’ tours, 360° Virtual Reality (“VR”) content support, and live-cast of the mm2 Digital Content Producers partnership with the initial eight YouTube channels. Beyond live broadcast, RINGS.TV will also provide Video-on-Demand (“VOD”) service for high demand local and acquired entertainment content, including concerts, movies and trailers - similar to other Over-the-Top (“OTT”) platforms.
“Through this technology investment, the deal marks our foray into the digital live stream and broadcast market, one of the fastest growing market trends of the world today. Through our investment in RINGS.TV, we will immediately be able to realize local and regional commercial opportunities in content delivery, marketing, brand sponsorship and extend our network to reach more eyeballs with compelling live content,” said Mr Melvin Ang, CEO, mm2 Asia. “With the relentless global increase in proliferation of smartphones, increasing screen sizes and increased Internet bandwidth speeds with lower costs especially throughout Asia, content and live videos are consumed instantly, on-the-go, and in shorter or convenient formats, and RINGS.TV is a perfect partner which will integrate into our existing value chain of entertainment,” added Mr Ang.
“We are humbled and delighted to announce the strategic investment by mm2 Asia, and the team is looking forward to the immediate tangible value-add that the mm2 group of companies and entertainment network brings.” said Dr Michael Yin, CEO and co-founder of RINGS.TV. “The deal is another validation of our persistence over 10 years of developing cutting edge solutions using evolving technologies to predict consumer and business trends, and we are cautiously optimistic to deliver a success within 5 years, which will be accelerated with mm2 Asia’s partnership,” added Dr Yin.
The deal is expected to conclude by the first quarter of 2017.
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This news release has been prepared by the Company and its contents have been reviewed by the Company’s Sponsor, Hong Leong Finance Limited (the “Sponsor”), for compliance with the relevant rules of the SGX-ST. The Sponsor has not independently verified the contents of this document.
This document has not been examined or approved by the SGX-ST. The Sponsor and the SGX-ST assume no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document.
The contact person for the Sponsor is Mr Tang Yeng Yuen, Vice President, Head of Corporate Finance who can be contacted at 16 Raffles Quay, #40-01A Hong Leong Building, Singapore 048581, Telephone: 6415 9886.