US$6.552M Follow-Up Capital Raise To Continue Growth in Global Gaming Sector

November 3, 2022 

HIGHLIGHTS

• MSM and RTE successfully complete US$20.74m capital raise
• RTE Portfolio Company, Galaxy Racer, announces historic JV Partnership with La Liga to transform the sports and media scene in the MENA region and Indian Subcontinent
• MSM and RTE to undertake capital raise for an additional US$6.552m to secure new investments in Pikaboom and Gamecan 
• MSM and RTE taking steps towards the “Roll-Up” of all RTE portfolio companies to form a single holding company to continue its progress to become a transmedia powerhouse   
• RTE launches its new website www.rte.com.au and social media channels on LinkedIn and Twitter
• MSM $0.04 Options (formerly listed options MSMOC) to expire on 27 December 2022
• MSM Annual Report to be finalised in November 2022 and AGM to be held in late December 2022

MSM Corporation International Limited (“MSM” or the “Company”) is pleased to advise that, following the merger with Riva Technology and Entertainment Limited (“RTE”), it has successfully completed a capital raise of US$20,740,000. The capital raise involved the issue of 617,261,905 fully paid ordinary shares at an issue price of US$0.0336 per share together with 154,315,476 options, exercisable at US$0.0336 (equivalent to $0.047 at the time of launching the initial capital raise) and expiring 31 December 2024 (“MSM Option”) representing one (1) free attaching MSM Option for every four (4) shares subscribed for and issued.

MSM is now undertaking a second-round capital raise (on the same terms) to raise up to US$6,552,000 via the issuance of 195,000,000 fully paid ordinary shares at an issue price of US$0.0336 per share together with 48,750,000 MSM Options representing one (1) free attaching MSM Option for every four (4) shares subscribed for and issued. US$3.9m has already been committed by a cornerstone investor.

The second-round capital raise is being undertaken to secure investments in Pikaboom and Gamecan, businesses that will be critical in advancing the proposed roll-up of all RTE portfolio companies anticipated to occur over the next 6 months, to form a true transmedia powerhouse and the only one of its kind focused on the Gen Z and Millennial audience.  

Pikaboom (20% investment) is a licensing company headed by Sandrine De Raspide (former Licensing at Marvel, Sanrio, MGA Entertainment). Pikaboom works with over 25 major brands primarily from Japan.

Gamecan (10% investment) are developing a game (already in closed beta) that is expected to potentially become the next big Esport. The game is a AAA title for PC and later console / mobile. Gamecan website – https://gamecan.eu/

As advised previously, the Company is considering pursuing a listing on a securities exchange. Shareholders should be aware that this is currently an expression of intention only. Any such listing is subject to a number of factors which are outside of the control of the Company and there is no certainty that another listing may occur.

RTE PORTFOLIOS COMPANY HIGHLIGHTS 

Galaxy Racer (12.5% investment) – https://galaxyracer.gg/  

Galaxy Racer is the world’s largest eSports, creator economy and content company with over 600 million followers, a vast majority of whom are the Gen Z / Millennial audience.

Highlight – Galaxy Racer has recently secured a 15-year Joint Venture (JV) with La Liga for the Middle East, North Africa and the Indian Sub-continent (MENA). The JV is expected to generate over $3 Billion in revenue over the 15-year period. The JV includes all media rights for La Liga and all commercial exploitation rights, and is similar to what La Liga have with Relevent Sports Group (under Stephen Ross) in the US.

See link for news on GXR’s JV with La Liga – https://apnews.com/article/sports-soccer-africa-middle-east-ef7373e25077d8210b47da5e1b745555   

With JV with La Liga being announced only recently, it represents a significant upside to investors participating in the upcoming capital raise on the same terms as the capital raise in January 2022.

Rogue Games (25% investment) – https://rogueco.com/    

Highlight – Rogue Games is a leading gaming publisher across mobile, console and PC and has had an exceptional 2022 one of Rogue Game’s upcoming titles for Q1 2023, The Last Case of Benedict Fox, recently winning the award for the most anticipated Xbox Game for next year on Xbox Game Pass. 

Rogue Games continues to strengthen the relationship with Netflix Games with the upcoming release of 5 to 10 new games, including Hello Kitty to be launched in Q4 2022, as well as developing relationships with emerging major gaming platforms similar to Netflix Gaming. 

Rogue Games has also acquired a AAA game IP and will be the 1st title currently under development to be launched under the GXR / RTE universe on the Sony PlayStation (PS5) and Microsoft Xbox platforms. The game is due to be released in 2025.

Recast (13.62% investment) – https://recast.app/      

Recast is a revolutionary new OTT platform primarily focused around sports with a unique monetisation model. 

Highlight – Recast has secured major IP on to their platform including friendlies and pre-season games for the likes of Manchester City FC and Inter Milan FC.

See link for the Inter Milan FC news – https://www.sportspromedia.com/news/inter-milan-recast-streaming-platform-serie-a-fan-engagement/   

The Recast OTT platform has gone through significant updates in line with the strategy for a 360-degree platform that goes beyond sports, and will be launching other verticals in the music and comedy sectors, and fully into scripted and non-scripted content.

The Recast OTT platform has gone through significant updates in line with the strategy for a 360-degree platform that goes beyond sports, and will be launching other verticals in the music and comedy sectors, and fully into scripted and non-scripted content.

MSMCI Managing Director, Paul Roy commented

“RTE is on its way to building a closed loop ecosystem of companies to create a Media and Sports conglomerate with investments spanning from gaming, IP, consumer product development and distribution, licensing, sports collectibles, sports content and distribution, eSports and the creator economy.

“RTE has already established investments across companies in this sector which range from significant minority holdings (with board representation in some cases) to outright majority ownership.

“Upon completion of this second-round capital raise we will add investments in Pikaboom and Gamecan which are highly complementary to our existing global gaming profile.”

EXPIRY OF MSM $0.04 OPTIONS (FORMERLY LISTED OPTIONS MSMOC) 

MSM advises that 155,471,429 unlisted options exercisable at $0.04 are due to expire on 27 December 2022. The Company will provide further details in the lead-up to the expiry date.

MSM ANNUAL REPORT AND ANNUAL GERNERAL MEETING

MSM wishes to advise that Company’s Annual Report will be finalised in November 2022 and the Annual General Meeting is due to be held in late December 2022. The Company will provide further details in the lead-up to the AGM. 

LAUNCH OF NEW RTE WEBSITE AND SOCIAL MEDIA CHANNELS

RTE has launched its new website www.rte.com.au and social media channels on LinkedIn and Twitter which will now become the hub of information for all MSM and RTE shareholders and followers. For all MSM and RTE company news and investor updates head to www.rte.com.au/investor-centre/.  

RTE Website – www.rte.com.au

RTE LinkedIn – www.linkedin.com/company/riva-technology-and-entertainment/

RTE Twitter – www.twitter.com/RivaTechAndEnt 

FOR FURTHER INFORMATION CONTACT: 

Investor enquiries Chris Jones

P: + 61 (0) 417 985 527

E: info@rte.com.au   

FORWARD-LOOKING STATEMENTS

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