AlphaTON Capital Corp., a global digital asset treasury company, intend to acquire 51 percent stake in GAMEE, a wholly owned subsidiary of Hong Kong-based gaming firm Animoca Brands.

Animoca Brands said in a statement on Wednesday that the firm has entered into a non-binding letter of intent (LOI) proposing equity and token investments including the potential acquisition by AlphaTON Capital of a controlling interest in GAMEE.

Under the terms of the LOI, AlphaTON Capital intends to acquire a 51% equity interest in GAMEE and 51 percent of the GAMEE (GMEE) and Watcoin (WAT) tokens held in GAMEE’s treasury.

Upon completion of the proposed transaction, AlphaTON Capital intends to strengthen its digital asset portfolio by purchasing up to $3 million of GMEE tokens and $1 million of WAT tokens on the open market.

GAMEE has over 119 million registered users and has served over 10 billion gameplay sessions across all its platforms; it is a highly popular Web3 gaming company in the Telegram ecosystem, where it has over 61 million users.

The proposed transaction will form an important part of AlphaTON Capital’s strategy to expand gaming within the Telegram ecosystem.

The LOI announced reflects the shared vision of Animoca Brands and AlphaTON Capital to promote digital property rights and expand Web3 accessibility on a large scale by leveraging Telegram.

“The potential strategic acquisition of GAMEE by ATON would mark an important milestone for Web3 gaming and the TON ecosystem, where GAMEE is a leading game ecosystem,

“We believe that this deal, if completed, would not only make GAMEE the first Nasdaq-listed Web3 gaming company with gaming assets listed on a major exchange, but also demonstrate how digital asset companies can extend into profitable operating companies such as GAMEE, and use profits to continue to accumulate digital assets,” said Yat Siu, co-founder and executive chairman of Animoca Brands.

“We are both honored and excited to join hands with the ATON team under the powerful leadership of Brittany Kaiser, a long-time champion of digital property rights,” he added.

Brittany Kaiser, Chief Executive Officer of AlphaTON Capital, added that AlphaTON Capital is focused on identifying the best founders in the Telegram ecosystem in order to support the growth of their businesses.

“The intended strategic acquisition of GAMEE shows our conviction in both the brilliance of its team as well as the high-growth opportunity presented by its user base of over 61 million users on the Telegram platform,

“We believe GAMEE can facilitate the mass adoption of open-source and decentralized technologies such as TON. We would be honored for the GAMEE team to join us as we embark on harnessing the biggest opportunity in digital assets,” she added.

The transaction is pending customary closing conditions and final definitive agreements.

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