One Horizon Group Inc. (NASDAQ:OHGI) has announced that the company has completed a $2 million sale its Banana Whale Studios Pte, Ltd majority interest to Velo partners. Banana Whale is a business to business gaming industry software provider that focuses on next-generation entertainment games and innovations. The stock gained 3.83% in the last trading session to close at $0.127.
Following the sale, the company will now focus on payment systems, media production as well as the expansion of their social media platform with wellness and sports partners.
Terms of the sale of the majority stake
One Horizon sold the majority stake at a purchase price of $2 million and on closing the deal the company received 1.5 million upfront. Following the Closing and finalization of the deal on 4 February 2019, One Horizon Group expects the balance of $0.5 Million of the purchase price to be settled within twelve months in accordance with the secured note that got executed at closing.
Speaking on the sale, Mark White the CEO and Founder of One Horizon stated that they wish the BWS management team all the best and they were grateful to have had the chance to work collaboratively with them.
Focus on the 123Wish platform and other services
The CEO indicated that currently, One Horizon is focusing on the expansion opportunities around their 123Wish platform and related payment systems as well as content creation. One Horizon holds a majority stake in the 123Wish platform which is a subscription-based marketplace experience. The company equally has a majority interest in Browning Productions and Entertainment, Inc. which is a digital media service and TV production company
Similarly, the Media and digital tech company also own various services that include full-service music production, Love Media House, representation of artists and digital media businesses, the Horizon Secure Messaging as well as secure messaging business in Asia.
Therefore the sale of their majority stake in Banana Whale studios was necessary and it returned over 100% returns on the invested capital in a span of fewer than nine months. The sale was in the best interest of the company’s shareholders since it turned out to be profitable.