Mobile game maker Animoca raises $4.7 million to launch a new product line

Paris Hilton is the latest brand to sign on with Animoca. Picture: Getty Images

Animoca Brands, the Hong Kong-based mobile game maker that reverse listed on the ASX last year, has raised $4.69 million by selling new shares.

33,504,141 new shares were issued at AU$0.14 cents per share, below both the current and listing price. Animoca’s market capitalisation stood at just under $10 million before the new shares were issued.

The company, which specialises in creating branded games, will use the new funds to develop games with toymaker Mattel and launch a new line of e-books.

The games use a fremium business model – they are free to download and then monetised through in-app purchases and advertising. Current branded games include Paris Hilton, Thomas the Tank Engine and Wallace and Grommit games.

The company decided the added value for shareholders of new product lines will outweigh the dilution of issuing new shares. The new e-book business will be a subscription-based business, diversifying the company away from a business model of “casual gaming” with a high customer churn rate.

Animoca is forecasting a drop in monthly active users in the quarter, on a year on year basis, down to 9.4 million active users despite adding more than 5 million.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.