Spackman Entertainment Group entered a deal to acquire Simplex Films from four parties for around S$3.3 million in shares, the South Korean drama producer said in a filing to SGX Monday.
Under the deal, Spackman will issue 165 million new shares at S$0.02 each, compared with the one-month volume weighted average price of around S$0.018, the filing said.
Simplex, founded in 2014, is an early stage film production firm led by veteran producer Lim Ji-young. The company plans to produce films to be released and distributed in South Korea and later in post-theatrical markets, such as cable television, broadcast television, video-on-demand and home video, according to the filing.
“Through the acquisition of Simplex, the group shall be able to expand its film production capacity and look forward to positive contribution from Simplex’s maiden film within this fiscal year,” John Ko, CEO of Spackman Entertainment, said in the statement.
Simplex is expected to release the film, “Jesters: The Game Changers,” in August. The company also has a tentative pipeline of films, including “A Bolt from the Blue,” which is a remake of a 2014 Japanese comedy-drama, Spackman said.
“Simplex is equipped with the capability to produce top quality films based on Ms. Lim Ji-young’s track record and experience in film production. The proposed acquisition also allows the sharing of networks and resources to bring about higher business synergy and efficiency,” Spackman added.
Simplex Films’ unaudited net profit before tax for the January-to-May period was 72.29 million won, or around S$83,743, the filing said.
The four parties selling their stakes in Simplex were Lim Ji Young, Oh Sangmin, Kang Hyunju and Nam Yu Ri, who had held 10.62 percent, 29.79 percent, 29.79 percent and 29.79 percent respectively, the filing said.
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