- Epicsoft Asia, a subsidiary of GCL Asia, and Wan Xin Culture
Technology Company, a subsidiary of Wan Xin Media Group, have
signed an MoU, allocating over USD $100
million to a five-year collaboration focused on innovating
intellectual property creation, game development, publishing, and
studio acquisitions
- The team-up anticipates introducing a real-time platform for
managing digital game codes for transparent sales reporting,
potentially driving efficiency and business growth
- A robust revenue optimization strategy will also be
introduced to target online game piracy, leading to increase in
recovered revenues
SINGAPORE, May 23,
2024 /PRNewswire/ -- Leading Southeast Asian games
distributor Epicsoft Asia, a subsidiary of GCL
Asia, has signed a Memorandum of Understanding (MoU)
with Wan Xin Culture Technology Company, a subsidiary of
Chinese conglomerate Wan Xin Media Group. This MoU marks the
beginning of an anticipated five-year collaboration to jointly
allocate over USD 100 million
to investment in intellectual property (IP) creation, game
development, publishing opportunities exploration, and game studio
acquisitions.
The anticipated joint investment will provide Wan Xin access to GCL Asia's extensive network
of publishing partners, including its subsidiary, 4Divinity, and
forthcoming game IPs, to achieve co-publishing targets. The result
will be enhanced capabilities for both parties to manage larger
titles globally and foster content creation within emerging game
studios worldwide.
The funding will also allow GCL Asia and Wan Xin to invest in high-potential game studios
worldwide that are seeking to launch their upcoming titles in the
fast-growing Asian market.
A Revenue Optimization Strategy (ROS)
With the collaboration in place, Epicsoft and Wan Xin will spearhead a robust revenue
optimization strategy to combat piracy and unauthorized software
use in the gaming industry.
A number of trials involving five triple AAA game titles yielded
at least a 30%- 40% increase in recovered revenues for game
publishers. This approach to targeting unlicensed sales channels
has proven highly effective and scalable.
Real-time Digital Game Codes Management
Platform
The collaboration's cornerstone is a cutting-edge digital game
code platform that generates real-time insights into consumer
behavior, purchasing patterns, and market dynamics. The platform is
expected to facilitate stakeholders with transparent sales
reporting, enhance marketing efficiency, and streamline
decision-making, further driving operational optimization and
revenue growth.
"Data is indispensable to monetizing entertainment IP, and even
more so in the gaming industry. The implementation of our dashboard
marks a significant milestone, offering game publishers
unprecedented insights into market dynamics," says Sebastian
Toke, CEO of GCL Asia. "With this tool at our disposal, we
anticipate meaningful improvements in revenue conversion, resulting
in a surge in deal opportunities, highlighting the game-changing
impact of data-driven decision-making, anti-piracy, and transparent
monetization."
Connected Game Toy Development
In addition to software innovations, the collaboration will aim
to bridge the physical and digital experiences in gaming through
the development of connected game toys. These toys serve as
collectibles and can be used to access digital game content through
mobile applications. Given the over USD 300 billion game and toy
market in 2023, both parties anticipate a high growth opportunity
over the next three years by introducing this new fan-engagement
avenue.
Epicsoft Asia and Wan Xin Culture Technology Company will also
explore establishing brand consistency and presenting a cohesive
image to external stakeholders. Through strategic branding
initiatives, this tie-up aims to solidify its position as a global
leader in the gaming industry, driving innovation and shaping the
future of interactive entertainment.
About Epicsoft Asia
Epicsoft Asia is a leading channel partner for games and
entertainment software in Asia.
With more than a decade of game publisher relationships, retail
network management, marketing services, and creative media design
capabilities, the company is the appointed distribution partner for
Take-Two, CD Projekt Red, SEGA®, and WB Games in the Southeast Asia and Greater China regions.
About GCL Asia
GCL Asia is a group of four key businesses that collectively
provide an entire suite of services and reach, enabling creators to
deliver fun experiences to the fast-growing Asian gamers market.
With distribution channels in seven countries, GCL Asia's
Epicsoft Asia, 4Divinity, 2Game.com, and Titan Digital Media,
connect with developers, publishers, and brand owners to establish
entertainment properties with consumers in the region.
Helmed by games industry veteran and group Chairman Jacky Choo, GCL's vision is to be the next Asian
powerhouse in games entertainment and content marketing, delivering
high-quality, engaging gaming experiences to the entire region with
brand partners and content creators.
In October of 2023, GCL Asia announced that it
has entered into a definitive business combination agreement
("BCA") with RF Acquisition Corp ("RF Acquisition") (NASDAQ: RFAC),
a publicly traded special purpose acquisition company, that will
result in GCL becoming a publicly listed company on the NASDAQ
stock market, subject to regulatory and
shareholder approvals and other customary closing
conditions.
About Wan Xin Culture Technology Company
Wan Xin Culture Technology Co. Limited was established in 2011
with a registered capital of 100 million
RMB. A wholly-owned subsidiary of Anhui Xinhua Media Co.,
Ltd., a large listed cultural enterprise in Anhui Province. The main business is in game
research and development, as well as technical and publishing
services. It owns a well-known domestic game platform, "Cube Game",
the company continues to launch excellent games in China as a distribution and publishing house,
co-development work and other forms, committed to providing users
with rich and colourful entertainment content. The games such as
"Sword and Fairy" series, "Sekiro: Shadows Die Twice" are highly
received among players.
About Wan Xin Media Group
Established in 2002, Wanxin Media is primarily engaged in the
development, publishing, and distribution of content in different
fields, including magazines, books, textbooks, audio, video, and
digital advertising. In 2010, Wanxin Media successfully achieved a
Shanghai Stock Exchange A-share IPO, raising 1.3 billion RMB. Since then, Wanxin Media's
market capitalisation has reached over 10
billion RMB.
About RF Acquisition Corp.
RF Acquisition is a blank check company incorporated as a
Delaware corporation whose
business purpose is to effect a merger, capital stock exchange,
asset acquisition, stock purchase, reorganization, or similar
business combination with one or more businesses. While RF
Acquisition may pursue an initial business combination target in
any business, industry, or geographic location, it intends to
search globally for target companies within the Southeast Asian new
economy sector or elsewhere. RF Acquisition was incorporated in
2021 and is based in Singapore.
Additional Information and Where to Find It
In connection with the proposed business combination transaction
(the "Proposed Transaction") between RF Acquisition Corp. and GCL
Asia (the "Company"), RF Acquisition and the Company intend to
cause a registration statement on Form F-4 to be filed with the
SEC, which will include a proxy statement to be distributed to RF
Acquisition's shareholders in connection with RF Acquisition's
solicitation for proxies for the vote by RF Acquisition's
shareholders in connection with the Proposed Transaction and other
matters as described in the registration statement, as well as a
prospectus relating to the Company's securities to be issued in
connection with the Proposed Transaction. RF Acquisition's
shareholders and other interested persons are advised to read, once
available, the preliminary proxy statement/prospectus and any
amendments thereto and, once available, the definitive proxy
statement/prospectus, in connection with RF Acquisition's
solicitation of proxies for its special meeting of shareholders to
be held to approve, among other things, the Proposed Transaction,
because these documents will contain important information about RF
Acquisition, the Company, and the Proposed Transaction. After the
registration statement is filed and declared effective, RF
Acquisition will mail a definitive proxy statement and other
relevant documents to its shareholders as of the record date to be
established for voting on the Proposed Transaction. Shareholders
may also obtain a copy of the preliminary and definitive proxy
statement/prospectus to be included in the registration statement,
once available, as well as other documents filed with the SEC
regarding the Proposed Transaction and other documents filed with
the SEC, without charge, at the SEC's website located at
www.sec.gov.
Forward-Looking Statements
This press release includes "forward-looking statements" which
may be identified by the use of words such as "estimate," "plan,"
"project," "forecast," "intend," "will," "expect," "anticipate,"
"believe," "seek," "target" or other similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
also include, but are not limited to, statements regarding
projections, estimates, and forecasts of revenue and other
financial and performance metrics, projections of market
opportunity and expectations, the estimated implied enterprise
value of the Combined Company, GCL's ability to scale and grow its
business, the advantages and expected growth of the Combined
Company, the Combined Company's ability to source and retain
talent, the cash position of the Combined Company following the
closing of the Proposed Transaction, RF Acquisition's and GCL's
ability to consummate the Proposed Transaction, and expectations
related to the terms and timing of the Proposed Transaction, as
applicable. These statements are based on various assumptions,
whether or not identified in this press release, and on the current
expectations of RF Acquisition's and GCL's management and are not
predictions of actual performance.
These statements involve risks, uncertainties, and other factors
that may cause actual results, levels of activity, performance, or
achievements to be materially different from those expressed or
implied by these forward-looking statements. Although each of RF
Acquisition and GCL believes that it has a reasonable basis for
each forward-looking statement contained in this press release,
each of RF Acquisition and GCL cautions you that these statements
are based on a combination of facts and factors currently known and
projections of the future, which are inherently uncertain. In
addition, there will be risks and uncertainties described in the
proxy statement/prospectus included in the Registration Statement
relating to the Proposed Transaction, which is expected to be filed
by the Combined Company with the SEC and other documents filed by
the Combined Company or RF Acquisition from time to time with the
SEC. These filings may identify and address other important risks
and uncertainties that could cause actual events and results to
differ materially from those contained in the forward-looking
statements. Neither RF Acquisition nor GCL can assure you that the
forward-looking statements in this press release will prove to be
accurate. These forward-looking statements are subject to a number
of risks and uncertainties, including, among others, the ability to
complete the Proposed Transaction due to the failure to obtain
approval from RF Acquisition's shareholders or satisfy other
closing conditions in the BCA, the occurrence of any event that
could give rise to the termination of the BCA, the ability to
recognize the anticipated benefits of the Proposed Transaction, the
amount of redemption requests made by RF Acquisition's public
shareholders, costs related to the Proposed Transaction, the impact
of the global COVID-19 pandemic, the risk that the Proposed
Transaction disrupts current plans and operations as a result of
the announcement and consummation of the Proposed Transaction, the
outcome of any potential litigation, government or regulatory
proceedings, and other risks and uncertainties, including those to
be included under the heading "Risk Factors" in the Registration
Statement to be filed by the Combined Company with the SEC and
those included under the heading "Risk Factors" in the Annual
Report on Form 10-K filed with the SEC on April 26, 2023, the Quarterly Reports on Form
10-Q filed with the SEC on June 8,
2022, August 24, 2022, and
November 14, 2022, respectively.
There may be additional risks that neither RF Acquisition nor GCL
presently know or that RF Acquisition and GCL currently believe are
immaterial that could also cause actual results to differ from
those contained in the forward-looking statements. In light of the
significant uncertainties in these forward-looking statements,
nothing in this press release should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved. The
forward-looking statements in this press release represent the
views of RF Acquisition and GCL as of the date of this press
release. Subsequent events and developments may cause those views
to change. However, while RF Acquisition and GCL may update these
forward-looking statements in the future, there is no current
intention to do so, except to the extent required by applicable
law. You should, therefore, not rely on these forward-looking
statements as representing the views of RF Acquisition or GCL as of
any date subsequent to the date of this press release. Except as
may be required by law, neither RF Acquisition nor GCL undertakes
any duty to update these forward-looking statements.
Participants in the Solicitation
RF Acquisition, GCL, and their respective directors, executive
officers, and other members of management and employees may, under
SEC rules, be deemed to be participants in the solicitations of
proxies from RF Acquisition's shareholders in connection with the
Proposed Transaction. Information regarding the persons who may,
under SEC rules, be deemed participants in the solicitation of RF
Acquisition's shareholders in connection with the Proposed
Transaction will be set forth in the proxy statement/prospectus
included in the Registration Statement to be filed with the SEC in
connection with the Proposed Transaction. You can find more
information about RF Acquisition's directors and executive officers
in RF Acquisition's final prospectus related to its initial public
offering dated March 23, 2022.
Additional information regarding the participants in the proxy
solicitation and a description of their direct and indirect
interests will be included in the proxy statement/prospectus when
it becomes available. Shareholders, potential investors, and other
interested persons should read the proxy statement/prospectus
carefully when it becomes available before making any voting or
investment decisions. You may obtain free copies of these documents
from the sources indicated above.
No Offer or Solicitation
This press release is not a proxy statement or solicitation of a
proxy, consent, or authorization with respect to any securities or
in respect of the potential Transaction and does not constitute an
offer to sell or the solicitation of an offer to buy any securities
of RF Acquisition Corp., GCL Asia or the combined company, or a
solicitation of any vote or approval, nor shall there be any sale
of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. No offer of
securities shall be made except by means of a prospectus meeting
the requirements of the Securities Act of 1933, as amended.
Investor / Media Contact:
Crocker Coulson
CEO, AUM Media, Inc.
(646) 652 7185
crocker.coulson@aummedia.org
GCL Contact:
Sebastian Toke
Chief Executive Officer, GCL
(65) 9026 5165
Sebastian@gcl.asia
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SOURCE GCL Asia; RF Acquisition Corp