Quick take:
- Animoca Brands and NEOM Investment Fund have formed a strategic partnership to drive web3 development.
- NEOM will invest $25 million via the issuance of convertible notes at A$4.50 per share.
- The Saudi investment fund will also invest another $25 million by buying Animoca Brands shares on the secondary market.
Animoca Brands and NEOM have announced a strategic partnership to accelerate the development of Web3 in Saudi Arabia and the surrounding environs. NEOM Investment Fund, the investment arm of the NEOM Project will invest $50 million as part of the agreement.
According to the announcement, NEOM plans to invest $25 million via the issuance of a convertible note at A$4.50 per share. The fund will invest another $25 million by buying shares of Animoca Brands on the secondary market.
The investment is part of the Saudi Vision 2030 for regional web3 initiatives. Animoca Brands will work with NEOM on building Web3 enterprise service capabilities that can be commercially applied on a global scale.
Some of the Web3 initiatives planned include “plans to establish a hub within NEOM to nurture the local Web3 ecosystem and bring in extensive capabilities from across Animoca Brands and its subsidiaries, partners, and broad portfolio of investments,” Animoca Brands said in a statement on Monday.
Commenting on the strategic memorandum of understanding Majid Mufti, CEO of NEOM Investment Fund said: “Web3 technology and infrastructure development will not only be an important foundation of NEOM’s tech stack and architecture, but also has potential to revolutionise global industries.”
Mufti believes this partnership will be crucial in NEOM’s plans to accelerate Web3 technology development and adoption in the region.
The processing of the convertible notes is subject to passing a number of conditions before the definite documents are signed.
Yat Siu, the co-founder and executive chairman of Animoca Brands, commented: “We are honoured and excited to partner with and receive investment from NEOM, one of the world’s most ambitious projects seeking to use innovation and technology to redefine how we live, work, and play. We have always referred to the growth of the Web3 ecosystem as the emergence of a new meta-nation, and now NEOM could well become the first region to fully harness the power of blockchain.”
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