IMAGI completes acquisition of Toon Express Group

The deal further promotes popularity of its animation brands through new commercial arrangements

IMAGI International Holdings Limited (“IMAGI”), has announced its shareholders have approved on Tuesday at the Special General Meeting the acquisition of Infoport Management Limited (together with its subsidiaries, “Toon Express Group”), the manager and owner of, among others, trademarks and character copyrights of popular Chinese animation “Pleasant Goat and Big Big Wolf”.

Soon after the approval of the acquisition, IMAGI is pleased to announce that Toon Express Group’s strategic partner, Creative Power Entertaining Limited Liability Company (“CPE”), has entered into a number of commercial arrangements with respect to its brands including “Pleasant Goat and Big Big Wolf” animation as follows:

1. collaboration with an experienced event organizer to bring new carnival experience featuring “Pleasant Goat and Big Big Wolf” to the audience
2. production of the “I Love Big Big Wolf” real-life movie
3. production of the “Happy Family” movie

IMAGI’s Chairman Francis Leung Pak To said, “We are delighted that the acquisition of Toon Express Group was supported by shareholders who attended the special general meeting today and that the resolutions were smoothly passed, which signifies a new chapter of the Group’s development. The newly announced commercial arrangements demonstrate our endeavors to transform the Group into an owner of leading brands in family entertainment and broaden and enhance the Group’s revenue sources.”

Bring a new dimension of mobile carnival experience to consumers
CPE has entered into a non-exclusive licensing arrangement with Mactus Pte Ltd (“Mactus”), an experienced event organiser and theme event specialist in Asia, allowing Mactus to organise “Pleasant Goat and Big Big Wolf” mobile carnival events in China for a period of two years commencing on 1 September 2011. Given Mactus’ extensive experience, Toon Express Group believes that Mactus will give the “Pleasant Goat and Big Big Wolf” mobile carnival events a new dimension of consumer experience., according to an IMAGI report

Extend reach of “Pleasant Goat and Big Big Wolf” to wider age range
CPE has also entered into an arrangement with Mr. Cartoon Pictures (“Mr. Cartoon”), a company specialising in movie investment, production, distribution and promotion, giving it the exclusive right to produce a real-life movie tentatively named “I Love Big Big Wolf, adapted from the television series “Pleasant Goat and Big Big Wolf”. Toon Express Group believes that the portrayal of the “Pleasant Goat and Big Big Wolf” characters by real-life actors will give audience a new visual experience by bringing these characters to "life", which will in turn extend the reach of “Pleasant Goat and Big Big Wolf” to a wider age range.

Portfolio diversification
To capitalize on the emerging popularity of the “Happy Family” television series, CPE has also agreed with Mr. Cartoon under a production agreement to produce the “Happy Family”animation movie. Under the production agreement, Mr Cartoon will invest in, and CPE will produce, the movie which is expected to be completed by 31 March 2012. CPE will license to Mr Cartoon the distribution rights of the movie in cinemas and on the Internet (in the PRC, Hong Kong, Macau and Taiwan) and rights to broadcast on television (in the PRC).

Mr Soh Szu Wei, CEO of Toon Express, said, “We believe the production of the “Happy Family” movie illustrates the growing popularity of “Happy Family” television series, and will help strengthen the “Happy Family” brand in the portfolio of Toon Express Group. This is in line with the strategy of Toon Express Group to develop multiple brands. We are confident that these commercial arrangements will further advance our portfolio diversification strategy.”

“With a largely untapped animation market in the PRC and the growing popularity of “Pleasant Goat and Big Big Wolf”, we are confident of generating attractive return for our shareholders and achieving our vision as a blue-chip company in branded family entertainment and consumer market.” Mr Leung concluded.