STOCKHOLM, SWEDEN (June 25, 2016) Acer Inc. (TWSE: 2353, LSE: ACID) and Starbreeze AB (First North: STAR) announced today that in relation to the setup of a joint venture for the manufacturing and commercialization of the StarVR Virtual Reality (VR) Head Mounted Display (HMD), the companies additionally reached a term sheet that Acer Inc. will contribute financing to Starbreeze through a two-year bond convertible into B-shares, corresponding to 9 MUSD. The bond will be issued under the Board's authorization from the AGM as soon as finalized terms are agreed upon.
The bond will have a coupon not exceeding an interest cost of 2% per year. Acer may convert the bond into B-shares at a conversion price at 60-day average share price, prior to June 24. Based on the number of outstanding shares today the bond would, upon conversion, approximately correspond to 1,6% of the share capital, and 0,5 % of the votes based on recent SEK to USD and stock price quotations.
"Acer's investment directly into Starbreeze will greatly benefit our long term VR-strategy and further solidify the collaboration between our companies and additionally enrich our eco-system," said Bo Andersson Klint, Starbreeze CEO.
The term sheet announced today forms the basis for ongoing discussions regarding a definitive agreement, subject to both parties' Board approval. The collaboration between Acer and Starbreeze began when the two companies signed a letter of intent to form a joint venture for the design, manufacturing, promotion, marketing and sales of the StarVR Virtual Reality (VR) Head-Mounted Display (HMD) last month. Also today, the companies announced that their respective Board of Directors have approved the establishment of the joint venture.
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For more information, please contact:
Maeva Sponbergs, EVP of Communication and Head of Investor Relations, Starbreeze AB
Tel: +46(0)8-209 208, email: ir@starbreeze.com (mailto:ir@starbreeze.com)
About Starbreeze:
Starbreeze is an independent creator, publisher and distributor of high quality entertainment products. With studios in Stockholm, Paris and Los Angeles, the company creates games and other virtual reality entertainment products, based on proprietary design and licensed content. Starbreeze's most recent games include PAYDAY 2, the adrenaline fueled bank robbing co-op game and the upcoming John Wick VR shooter and survival co-op FPS OVERKILL's The Walking Dead.
Starbreeze has set out to develop truly immersive virtual reality experiences, by integrating software and hardware in its StarVR head mounted display, to be produced together with Acer, displaying a unique field of vision and a mission to bring top-end VR to large audiences. Starbreeze launched StarVR with a VR-experience at the Electronic Entertainment Expo (E3) in June 2015, gained by teaming up with French Infinite Eye. In January 2016, Starbreeze unveiled the StarCade initiative; centers that invites people to immerse themselves into premium VR experiences. The first cinematic VR experience "Cockatoo Spritz" directed by Stephane Barbato, premiered at the 69th Cannes Film Festival 2016.
Headquartered in Stockholm, Sweden, Starbreeze's shares are listed on Nasdaq Stockholm First North Premier under the tickers STAR A and STAR B with the ISIN-codes SE0007158928 (A-share) and SE0005992831 (B-share). Remium Nordic is the company's Certified Adviser. For more information, please visit http://www.starbreeze.com (http://www.starbreeze.com/), http://www.starvr.com (http://www.starvr.com/), http://www.overkillsoftware.com (http://www.overkillsoftware.com/)
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Starbreeze AB via Globenewswire
