ADDX marks XM Studios’ investment, after Heliconia backs luxury collectibles maker
XM Studios, a company supported by Capital of Heliconia, Reveals New List of Tickets Exchangeable on Digital Securities Investment Platform ADDX – previously doing business as iSTOX.
As mentioned in an update shared with CI, the deal secures SGD 4.5 million of additional capital for the company “producing high-end art collectibles for global brands such as wonder, DC Comics, and Hasbro. “
The deal came after the announcement last week of Heliconia as a “new strategic investor in XM Studios”. Heliconia is an ‘independently managed wholly owned subsidiary of Temasek Holdings. “
Founded in 2012, Singapore-headquartered XM Studios has seen a steady increase in revenue as well as an “expanding network of licensing agreements,” the update revealed. Last year, revenue more than doubled to SGD 16.9 million from SGD 7.9 million the previous year, while the company also “recorded a net profit of more than SGD 4.2 million. SGD in 2020 “.
In order to take advantage of the vast advantages of digital titles, the offering has been tokenized on the ADDX platform, without “any non-digital parallel issuance”.
Heliconia anchored the deal with an investment of SGD 1 million. Other accredited investors made contributions “on the same terms as Heliconia, in an offering that has been subscribed over 1.75 times depending on the company’s fundraising goal.”
In order to meet the “strong demand” from investors during the underwriting phase, the size of the transaction was “increased from SGD 3 million to SGD 4.5 million”. The acquired capital will be used “for the expansion of premium and premium collection activities of XM Studios into new markets and the acquisition of new intellectual property licenses, as well as for general working capital purposes”.
As stated in the update:
“The new offering took the form of exchangeable tickets which are redeemable for XM Studios shares at a significant discount under specific liquidity scenarios. If the exchangeable notes are not redeemed within 18 months, the notes will mature at an interest rate of 6% per annum. Thanks to the efficiencies of digital securities, ADDX has been able to expand investor access by reducing the minimum investment size to SGD 10,000 from the typical minimum SGD 1 million for such investments.
Primary subscriptions are now closed and XM Studios tokens “are now listed on the secondary exchange ADDX, where they can be redeemed by all accredited investors, including those who did not subscribe in the first place,” confirmed the announcement.
XM Studios’ Exchangeable Ticket Listing “marks the first in a new line of equity-related products by ADDX, expanding the suite of ADDX listings beyond funds and bonds,” the update revealed while adding that “in line with its strategy of building a multi-asset platform to meet all the needs of private market investors,” ADDX will launch new products in 2021. They would include structured products and investments with “crypto exposure -coins ”.
As stated in the announcement, XM Studios is a Singapore-based design studio focused on ‘creating high-end collectibles’.
Among the intellectual property licenses it holds “are Marvel, Star Wars, DC Comics and Sanrio”.
Crafted and hand painted, these collectible statues are “crafted with careful attention to detail such as zippers and fine buckles,” the update noted. They also come with “switch” parts to “reflect what the character would look like in various settings and moods”.
Depending on complexity and size, statues collectibles have “prices ranging from under S $ 1,000 up to SGD 6,000 each”. XM Studios manufactures the collectibles in collaboration with a team of international sculptors, illustrators and designers, and “distributes them through a global network of 20 key distributors.”
Ben Ang, CEO of XM Studios, declared:
“XM Studios has grown from a modest store in the Bras Basah complex in Singapore to a global brand. We couldn’t have done it without the constant support of our fans and collectors over the past decade. Fundraising on ADDX was designed to allow split access with a minimum investment of only SGD 10,000, as we wanted to provide longtime fans of XM Studios the opportunity to participate in the growth of the business. The new capital also allows XM Studios to seize opportunities in the next phase of our expansion – into new markets and segments like premium mass collectibles, allowing fans to purchase their favorite collectibles at one. more affordable price.
Oi Yee Choo, CCO at ADDX, noted:
“XM Studios is a corporate superhero, a local Singaporean start-up with an expanding global footprint. Even though it is growing rapidly, the company has managed to become profitable, which makes it an attractive investment proposition. … They started with Marvel in 2013, but haven’t rested on their laurels, announcing licenses with Sanrio, Harry Potter, Looney Tunes and The Great Gatsby only this year as they expand into the items segment of high-end collection.
“The new line of equity related products on ADDX offers investors a chance to diversify their portfolios across faster growing companies. Before these products are listed on ADDX, they go through a robust due diligence and listing committee process. … Plus, the fractional sizes allowed by digital securities allow investors to take just the right amount of any investment for their current portfolios.
Created in 2017, ADDX is an integrated platform for the issue, custody and exchange of “digital securities regulated by the Monetary Authority of Singapore (MAS). “
The Fintech company would be supported by the Singapore Stock Exchange, Heliconia Capital and Japanese investors JIC Venture Growth Investments (JIC-VGI) and the Development Bank of Japan (DBJ). ADDX serves private investors and accredited companies in different 27 countries covering Asia-Pacific, Europe and the Americas (but not the United States).
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