SINGAPORE: Spackman Entertainment Group Limited has entered into a non-binding memorandum of understanding (MOU) with Spackman Equities Group (SQG), pursuant to which the Company intends to sell the its entire interest in Spackman Media Group Limited to SQG.
Spackman Equities Group (SQG) is an investment company that selectively invests into growth companies that possess proprietary know-how or technologies.
SQG is a substantial shareholder of the Company, holding 7.55% of the total issued shares of the Company. Richard Lee, the Non-Executive Director of the Company, and Na Kyoungwon, the Executive Director, President and Chief Operating Officer of the Company, are also directors of SQG.
Under the MOU, the Company intends to sell all its 13,968,038 common voting shares of Spackman Media Group, representing 43.88% of the Company’s interest in Spackman Media Group.
The purchase consideration will be fully satisfied by newly issued common shares of the SQG. Accordingly, following the completion of the Proposed Divestment, SQG will be a subsidiary of the Company.
Upon the completion of the Proposed Divestment, the Parties plans to develop, produce and finance motion pictures and entertainment content targeted for the North American market, as well as develop other entertainment-related businesses in North America. The rationale mentioned above is in line with the Group’s strategy to diversify into the production and financing of US Hollywood movies, a major initiative that the Group plans to unveil in the near future.