Appspotr gets investment from Novel Unicorn, in a deal that opens up Asian markets.
If all milestones within the agreement are reached Novel Unicorn becomes AppSpotr’s new main owner and AppSpotr gains a strong position in the Asian market. To finance this venture AppSpotr will issue 15 MSEK ($1.74M) worth of new shares, 5 MSEK of which will be directed to Novel Unicorn.
AppSpotr, founded in 2006 and led by CEO Patric Bottne, has developed a platform that lets anyone build native iOS
and Android apps without any programming skills. The user easily selects the functionality it needs, customizes the design and content, and then publishes the finished app to App Store and Google Play. AppSpotr have nine employees and is based in Gothenburg, Sweden.
The cooperation agreement entails that AppSpotr and Novel Unicorn will form a Hong Kong based joint venture company named AppSpotr Asia, of which Novel Unicorn will initially own 70 percent and AppSpotr 30 percent. AppSpotr will provide AppSpotr Asia with 5 MSEK in equity financing while Novel Unicorn will be responsible for the daily operations which is to build a market position in Asia.
As milestones are reached AppSpotr’s ownership in AppSpotr Asia will increase as Novel Unicorn free of charge transfers shares in AppSpotr Asia to AppSpotr. Novel Unicorn will at the same time receive warrants redeemable for shares in AppSpotr at a price of 0.20 SEK. Novel Unicorn will thus receive shares in AppSpotr in exchange for building AppSpotr’s market position in Asia.
If all milestones are reached AppSpotr Asia will be a wholly owned subsidiary of AppSpotr and Novel Unicorn will receive warrants corresponding to 27.55 percent of the share capital at the time of the issue of warrants. Novel Unicorn will thereby become the new main owner with a total ownership share of 27.55 % plus the share that the directed share issue corresponds to.
The overall aim is for AppSpotr Asia to within 24 months sign deals with important partners and sell 100 000 subscriptions at a price of 3 600 SEK per annum, which corresponds to a running annual income of 360 MSEK. Only full paid in 12 month subscriptions will be counted towards the sales targets.
The first two milestones are to sign deals with important partners and thus entails no revenues. The last three milestones will be based on sales targets.