MultiMetaVerse Announces Release of Restricted Closing Payment Shares

Rhea-AI Summary

MultiMetaVerse Holdings Limited (MMV) Announces Release of Restricted Closing Payment Shares, Ticker Symbol: MMV

Insights

Financial Analyst

The announcement by MultiMetaVerse Holdings Limited (MMV) regarding the release of Restricted Closing Payment Shares post a successful business combination is of significant interest to investors and the market at large. The release of 5,000,000 Class A ordinary shares to the Restricted Shareholders, contingent on the development and announcement of new gameplay, signifies a milestone achievement that could potentially influence MMV's market valuation and investor confidence.

The unlocking of these shares adds liquidity to the market and could have implications on the company's stock price due to the increased number of shares available for trading. Moreover, it reflects positively on the company's ability to meet predetermined operational targets, which in this case, is the development of 'Project A'—a major update to an existing mobile game. This development is likely to be closely monitored by investors as it may impact future revenue streams and the company's competitive position in the animation and entertainment industry.

Industry Analyst

From an industry perspective, MMV's strategic focus on enhancing its mobile game offerings through significant updates like 'Project A' aligns with current trends in the gaming sector where continuous innovation is critical for maintaining user engagement and market share. The integration of new digital collectible card gameplay and fresh storylines is an attempt to revitalize the game's appeal and potentially drive user growth and retention.

Considering the competitive nature of the mobile gaming market in China, such updates are crucial for a company's sustained relevance. The industry has seen a surge in the popularity of digital collectibles and MMV's decision to capitalize on this trend could prove beneficial. However, the long-term success of these initiatives will depend on user reception and the ability to monetize the new features effectively.

Gaming Industry Expert

The release of the Restricted Closing Payment Shares following the launch of a significant game update is indicative of MMV's commitment to its growth strategy and its contractual obligations to shareholders. The gaming industry, particularly in China, places a high premium on innovation and the frequent release of new content to sustain user interest.

'Project A's' focus on digital collectible card gameplay is a strategic move, tapping into a niche yet rapidly growing segment within the gaming community. The success of this initiative will likely be measured by player engagement metrics and revenue generation from in-game purchases. These metrics are critical indicators of the game's performance and, by extension, can influence the company's financial health.

SHANGHAI , Dec. 26, 2023 /PRNewswire/ -- MultiMetaVerse Holdings Limited ("MMV" or the "Company"), an animation and entertainment company for young consumers in China, announced today that its Board of Directors has unanimously approved the release of all the Restricted Closing Payment Shares (as defined hereinafter), with an aggregate 5,000,000 Class A ordinary shares of the Company, in connection with the business combination completed on January 4, 2023 (the "Business Combination").

Pursuant to the share restriction agreements between the Company and each of Avatar Group Holdings Limited ("Avatar"), Lucky Cookie Holdings Limited ("Lucky Cookie") and F.L.M Holdings Limited ("F.L.M") (each a "Restricted Shareholder"; collectively the "Restricted Shareholders"), respectively ( "Share Restriction Agreements"), MMV and each of the Restricted Shareholders agreed that 1,252,374 Class A ordinary shares issued to Lucky Cookie, 3,162,072 Class A ordinary shares issued to Avatar and 585,554 Class A ordinary shares issued to F.L.M, or 5,000,000 Class A ordinary shares in total, in connection with the Business Combination (collectively, "Restricted Closing Payment Shares") shall be released upon the satisfaction of the Release Event (defined below) within 12 months following the closing of the Business Combination. The Restricted Closing Payment Shares shall vest and become transferable and non-forfeitable upon the successful creation of a new gameplay coupled with a public announcement regarding the release of the new gameplay, whether through the introduction of a new mobile game or updates to an existing mobile game to revamp its gameplay and commercial appeal (the "Release Event").

MMV officially launched Project A on February 1, 2023. Project A is a major update to an existing mobile game, which adds a new online digital collectible card gameplay and incorporates new storylines of Aotu World. As determined by MMV's Board of Directors, the launch has satisfied the Release Event and, in accordance with the Restriction Share Agreements, the Restricted Closing Payment Shares shall be released to the Restricted Shareholders.

About MultiMetaVerse Holdings Limited

MultiMetaVerse Holdings Limited (NASDAQ: MMV) is an animation and entertainment company dedicated to providing a high-quality, immersive entertainment experience through original, user-generated, and professional user-generated content. MMV commenced animation production in 2015 under its signature Aotu World brand, which has attracted a broad following with its inspiring storyline and unique graphic style, particularly among younger audiences in China. By leveraging the company's established user base, MMV has built a diverse product portfolio, including animated content, comic books, short videos, collectibles, stationery, consumer products, and mobile games across the Aotu World brand. It has also developed and augmented new brands, stories, and characters, such as Neko Album.

For more information, please visit https://www.multi-metaverse.com/.

For investor and media inquiries, please contact:

MultiMetaVerse Holdings Limited
Investor Relations
E-mail: ir@multi-metaverse.com

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of the Company's future commercial operations. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, such as the Company's inability to implement its business plans, identify and realize additional opportunities, or meet or exceed its financial projections and changes in the regulatory or competitive environment in which the Company operates. You should carefully consider the foregoing factors and the other risks and uncertainties described in the Company's Annual Report on Form 20-F and other documents filed or to be filed by the Company with the SEC from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. All information provided herein is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

View original content:https://www.prnewswire.com/news-releases/multimetaverse-announces-release-of-restricted-closing-payment-shares-302022316.html

SOURCE MultiMetaVerse Holdings Limited

FAQ

What did MultiMetaVerse Holdings Limited (MMV) announce regarding Restricted Closing Payment Shares?

MMV announced the approval for the release of 5,000,000 Class A ordinary shares in connection with the Business Combination completed on January 4, 2023.

What is the significance of the Release Event for the Restricted Closing Payment Shares?

The Restricted Closing Payment Shares shall vest and become transferable and non-forfeitable upon the successful creation of a new gameplay coupled with a public announcement regarding the release of the new gameplay.

What is Project A launched by MultiMetaVerse Holdings Limited (MMV)?

Project A is a major update to an existing mobile game, introducing a new online digital collectible card gameplay and new storylines of Aotu World.

When was Project A officially launched by MultiMetaVerse Holdings Limited (MMV)?

Project A was officially launched on February 1, 2023.