mm2 Asia Sells $3.5 Million in New Shares, Inks Content Deal with Hesheng

SINGAPORE: Production house mm2 Asia is planning to raise approximately S$5 million ($3.5 million) from a new share placement to three investors, one of which is Hesheng Media, which it also signed an MOU with regarding content development.

The investors are Hesheng Media, Apex Capital Group and Maxi-Harvest Group. Under the respective placement agreements, Hesheng Media will receive 1,270,325 new shares, representing approximately 0.58 percent of the company. Apex Capital will receive 2,540,650 new shares, representing approximately 1.16 percent, and Maxi-Harvest will receive 2,540,650 new shares, representing approximately 1.16 percent of the company’s enlarged and issued and paid-up share capital of approximately 219.7 million shares.

The placement will increase Hesheng Media’s holding of the company’s shares from 1.92 million to roughly 3.2 million. Hesheng Media is mm2 Asia’s Pre-IPO shareholder and the increase of its stake in the company will allow for closer working ties. The two have signed a Memorandum of Understanding (MOU) that will see them partnering to co-produce movies, dramas and reality shows, as well as digital media content for the international market. This MOU records an understanding that Hesheng Media will invest up to $5 million in the above-mentioned projects, with mm2 Asia providing IPs and production expertise.

Melvin Ang, CEO of mm2 Asia, said, “This placement underscores investor confidence in our future growth as we take on larger and higher-value projects while moving down the value chain. The additional funds will also help us to reduce our borrowings. We appreciate the continued support by Hesheng Media and other investors. Our board are heartened by their support and confidence and are committed to see mm2 Asia to greater heights.”

Of the MOU with Hesheng, Ang said: “Today marks a momentous milestone for the group. The signing of the MOU is a strategic step for the Group to enhance exposure in the China market, which holds enormous potential. This joint partnership will combine our respective expertise and strategic leadership in a synergistic way. Hesheng’s extensive commercial network will allow us to gain more exposure in China and Hesheng, can tap on our regional network and the content developed by mm2 and partners. This partnership will be of major benefit to both companies.”

Wei Wei, CEO of Hesheng Media, said, “This MOU demonstrates Hesheng Media’s commitment to mm2 Asia. Hesheng is very proud to be associated with mm2 since its IPO. We see many opportunities to collaborate with mm2 as part of our plan to grow Hesheng beyond our established market. While we are working on numerous content ideas and concepts in China, we see opportunities in overseas concepts working well in China too. We are very confident that mm2 Asia will do well in this area with their extensive presence in China and other key markets like Hong Kong, Taipei, Malaysia and Singapore.

“Hesheng and our strong advertising clienteles, who are seeking stronger international presence can leverage on mm2 established production expertise and regional network. We are confident this MOU is the beginning of a mutually profitable relationship between both companies for years to come.”