Last checked at 4 Oct 2017 15:46
4 October 2017
SEALAND CAPITAL GALAXY LIMITED (LSE: SCGL)
("Sealand", "SCGL" or "the Company")
Subscription for a 55 % interest in Guangzhou Ruiyou Information Technologies Co., Ltd ("Rightyoo")
The board of directors of the Company is pleased to announce that on 4 October 2017, the Company entered into a Subscription Agreement with Rightyoo and its shareholders, in which the Company agreed to subscribe for a 55% interest in Rightyoo for the aggregate sum of RMB1,222,000 (approximately GBP 139,000) (the "Subscription"). After the completion of the Subscription (which is expected to occur on or before 9 October 2017, Rightyoo will become a partially-owned subsidiary of the Company.
Following the Subscription, the Company has the right to appoint two directors to the board of Rightyoo, resulting in a board of three directors. Additional appointments to the board are subject to the Company's approval.
Rightyoo, is a PRC-incorporated mobile games developer and distributor which has been active since 2015. It primarily develops apps for the personalisation of user desktop and mobile devices, as well as being a distributor and publisher of over 20 mobile gaming apps for third party developers including Huawei Technologies Co. Ltd ("Huawei").
A cooperation agreement was entered into between Rightyoo and Huawei in 2015 ("Co-operation Agreement") and will remain valid and continue beyond the Subscription.
Under the terms of the Co-operation Agreement, Rightyoo will list its mobile gaming content on Huawei's international platform "inTouch", with a view to distributing Rightyoo's content globally through Huawei's established oversea channels.
inTouch operates in eight regional centers with over 70 carriers. Its global distribution network covers over 30 countries in Latin America, Africa, Southeast Asia and the Middle East.
Supported by the strong global presence of inTouch, Rightyoo is strategically positioned to introduce its products through a well-established and far reaching distribution network.
In addition to being able to leverage inTouch's global distribution network, Rightyoo also has engaged in strategic partnerships with over 60 content providers and 16 distributors worldwide.
In view of Rightyoo's extensive geographical reach and diversified strategic partnerships, the Subscription is expected to expand the Company's market presence and enhance its overall competitiveness in the social media sector, bringing with it strong growth potential and momentum.
Huawei is one of the world's leading information and communications technology groups, which reported revenues of US$75.1 billion in 2016. Huawei operates in over 170 countries, serving over one-third of the world's population, providing a vast range of computing and mobile devices, and associated services.
Enquiries:
Sealand Capital Galaxy
Nicholas Lyth, Non-Executive Director 07769 906 686
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Disclaimer
This announcement contains certain forward-looking statements that are subject to the risks and uncertainties associated with Group's business. These statements are made by the Company and its Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent risks and uncertainties, including both economic and business factors and/or factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.