Saudi Arabia-based NEOM Investment Fund will invest $50 million in Hong Kong-based gaming firm Animoca Brands.
Animoca Brands said in a statement on Monday that the firm has entered into a strategic partnership memorandum of understanding with NEOM Investment Fund to drive regional Web3 initiatives in line with the Saudi Vision 2030 plan.
NEOM Investment Fund is proposing to invest $50 million in Animoca Brands, of which $25 million will be via the issuance of convertible notes at a conversion cap price of AUD 4.50 ($2.86) per share and the remaining $25 million will be invested in purchasing the company’s shares on the secondary market.
As part of the strategic relationship, Animoca Brands will work with NEOM Investment Fund on building Web3 enterprise service capabilities with global commercial applicability, which will be deployed to support technology advancements in Riyadh and the NEOM region, a project for a new urban area in northwest Saudi Arabia envisioned as a hub for technology, trade, entertainment and tourism.
These projects will include a range of Web3 initiatives, including plans to establish a hub within NEOM to nurture the local Web3 ecosystem and bring in extensive capabilities from across Animoca Brands and its subsidiaries, partners, and broad portfolio of investments.
“We are excited to partner with Animoca Brands to support the development of NEOM’s digital infrastructure,
“Web3 technology and infrastructure development will not only be an important foundation of NEOM’s tech stack and architecture, but also has potential to revolutionize global industries,” said Majid Mufti, Chief Executive Officer of NEOM Investment Fund.
He said the firm hopes to accelerate Web3 technology development and adoption by partnering with a market-leading company like Animoca Brands.
“We have always referred to the growth of the Web3 ecosystem as the emergence of a new meta-nation, and now NEOM could well become the first region to fully harness the power of blockchain,” he added.
It is noted that NEOM will include hyperconnected, cognitive cities, ports and enterprise zones, research centers, sports and entertainment venues and tourist destinations.
NEOM Investment Fund is the strategic investment arm of NEOM. The fund will support the buildout and development of NEOM and deliver mutual, long-term value across sector projects with large multinationals, innovators, and the wider institutional investment community that are participating in the building of NEOM and the implementation of its vision for the future.
Its core activities include executing investments alongside NEOM’s sectors and subsidiary companies in pioneering growth companies and next-generation industries, and on fundraising at the project level that would ultimately lead to strategic management of NEOM’s diverse portfolio of commercial assets.