Hong Kong blockchain gaming startup Animoca Brands to buy fitness firm

Blockchain gaming company Animoca Brands has announced that it will acquire fitness application Lympo through its wholly owned subsidiary, Animoca Brands Limited, for an upfront consideration of almost US$1.4 million.

Photo credit: Lympo

Lympo operates a blockchain platform that helps users lead a healthy life by rewarding them with Lympo Tokens (LYM) when they exercise using the company’s mobile app. It is also building a data-sharing ecosystem, which will connect fitness and wellness stakeholders with users via a blockchain-based reward system that’s linked to users’ health and fitness data.

Lithuania-based Lympo claims that there are currently over 75,000 holders of LYM.

With the acquisition, Hong Kong-based Animoca Brands will receive all LYM that Lympo currently holds. The acquisition price, meanwhile, will be payable in Animoca Brands shares on a per share basis of 0.25 Australian dollars (US$0.19) or the market price of the shares as of the deal’s closing date, whichever is higher.

The acquisition will help Animoca Brands develop LYM within its existing token ecosystems including its REVV Token, the utility token that powers blockchain game F1 Delta Time and upcoming games based on races like MotoGP and Formula E.

The deal also stipulates that if Lympo achieves certain revenue milestones during the one-year period following the closing date of the acquisition, Animoca Brands will pay the fitness company an additional US$1.5 million earnout payment that will be payable in cash or shares.

The company has not disclosed the revenue milestones that will make Lympo eligible for this payment.

Currency converted from Australian dollar to US dollar: US$1 = 1.31 Australian dollars.