In brief: Animoca agrees to acquire company behind AI accelerator Zeroth

Animoca Brands has entered into an earn-in agreement with Zeroth founder Tak Lo to acquire a 67 percent stake in Venture Classic Limited, the operational company for the artificial intelligence accelerator Zeroth. Total consideration for the transaction is approximately US$1.08 million, consisting of US$720,000 in cash earn-in and approximately US$360,000 in Animoca Brands shares.

Separately, Sun Hung Kai & Co, a leading investment firm based in Hong Kong, entered into a memorandum of understanding to develop a deeper strategic partnership with Zeroth. This partnership may include direct investments and further potential investment into Zeroth or its segregated portfolios.

Source: Animoca Brands

Australia-listed games studio Animoca has also committed to underwrite up to US$2 million investment into Zeroth, which will enable participating investors to become limited partners and claim a share of the proceeds from startups that go through Zeroth’s accelerator program.

Animoca would become the majority shareholder in Zeroth as a result of this deal. It previously committed to invest up to US$767,000 in the Hong Kong-based accelerator for AI and blockchain startups.

Currency converted from Australian dollars. Rate: US$1 = A$1.38