VANCOUVER, BRITISH COLUMBIA: Looking Glass Labs (LGL), a leading Web3 platform specialising in immersive metaverse environments, play-to-earn tokenisation and blockchain monetisation strategies, announces that it has entered into a letter of intent to vend GenZeroes Productions Inc., the GenX smart contract and all associated intellectual propertyto GenZeroes Universe Inc.
GenZeroes Universe Inc. is led by Aleks Paunovic, an actor and producer as well as a cast member of GenZeroes; Rick Dugdale, a director and producer, and founder of Enderby Entertainment; and Neil Stevenson-Moore, the Chief Product Officer of Looking Glass Labs.
GenZeroes Productions is the owner of and produced a live-action series consisting of live-action episodes and comics in the science fiction genre, with lore that includes references to the GenX collection (a collection of robot characters created by artists).
Upon acquisition of the Assets, the Purchaser intends to leverage the experience of its leadership team to further develop GenZeroes and explore opportunities to monetize the Assets in the entertainment and film industry. The proposed Transaction will provide Looking Glass Labs with the opportunity for future revenue from GenZeroes without the requirement of further capital investment. The proposed Transaction remains subject to the entering into of definitive agreements and standard closing conditions for a transaction of this nature. The Company will provide an update on the closing of the Transaction contemplated under the LOI as necessary.
Based on the Purchaser’s strong relationships within the entertainment industry, it is viewed by LGL management as being well positioned to maximize the value of GenZeroes and GenX for the mutual benefit of itself, the Company as well as the GenZeroes and GenX communities.
As consideration for the Assets the Company shall receive a promissory note for CA$800,000 bearing an interest rate of prime rate plus 1% and a five-year term to maturity, with the option by the Purchaser to extend the term for an additional five years. The Company shall also retain a 50% royalty in perpetuity on all net proceeds from the entity GenZeroes Productions Inc., which relates to the already completed first season of the GenZeroes series. The Note shall be secured against the shares of GenZeroes Productions Inc. and the Related IP.
In addition to the LOI, management has initiated a process to evaluate potential strategic alternatives with a view to preserve or maximize shareholder and user value.
Upon closing of the transactions, the Company will continue to focus on building its Pocket Dimension product and seeking partnerships. Pocket Dimension is a private virtual space representing an area size of approximately four acres in which parcels provide their owners, held through NFTs, the ability to explore the virtual space and socialize with other users, through avatars, within the virtual world. The Pocket Dimension metaverse is a digital world that has been built using the latest version of Unreal Engine in order to offer users a high-fidelity virtual experience. Each Pocket Dimension features one of eleven different environments including Archipelago, Countryside, Dale, Dunes, Fjord, Marsh, Savanna, Tundra, Woodland and Zen, and Genesis Moon.
The Company released the beta version of Pocket Dimension on February 21, 2023. During the beta phase, the Company is collecting feedback from users to address technical glitches. The Pocket Dimension Beta version has been built upon the previous updates included in the alpha release, which brought the following upgrades to users:
- 11 unique four-acre parcels of ultra-realistic land;
- Two stock playable avatars;
- Four NFT art galleries displaying stock artwork;
- Non-player character host interactions; and
- The Gutter Trap House in affiliation with the Gutter Cat Gang.
By the end of the second calendar quarter, the Company expects to finalize its Pocket Dimension with improvements to certain bugs identified during the beta phase while seeking other Web 3.0 communities to participate in the metaverse.
Overlords is a digital battle game where opponents battle one another and are represented by avatars from the GenX avatar collection. The Company has developed Overlords to an early alpha stage that provides a playable demo featuring early game concepts and interfaces. LGL is currently seeking partners to further develop Overlords into a version to be made available for the gaming community.
The HOK genesis memberships granted owners access to members-only benefits including airdrops, private discord access, and presale opportunities for Web3 community initiatives. The Company has updated its mandate with the goal of reducing cash burn. The Company has two further airdrops scheduled featuring the Qt-Bot, which is designed to be an in-app NPC (Non-playable Character) feature for future versions of Pocket Dimension.
Other than as described in this press release, the Company has not made any decisions related to other strategic alternatives at this time and there can be no assurance that the continued evaluation of strategic alternatives will result in any strategic alternative, or any assurance as to its outcome or timing. It is the Company’s current intention not to disclose developments with respect to the process unless and until its board of directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate. We caution that there are no assurances or guarantees that the strategic alternative review process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction.
“The team at our flagship subsidiary, House of Kibaa, did a great job of generating value by creating GenZeroes and GenX from scratch, we feel that GenZeroes and GenX will be better positioned to flourish with the new leadership team. This proposed transaction provides LGL with an opportunity for future revenue without further investment,” said Dorian Banks, Chief Executive Officer of LGL. “Once the transaction is closed, LGL will be continue to focus on its Pocket Dimension metaverse and providing digital design and other consulting services to third parties in the Web 3.0 space,” added Mr. Banks.