Prime Focus announced that its UK-based subsidiary DNEG and Sports Ventures Acquisition Corp. have mutually agreed to terminate their previously announced business combination agreement, effective immediately.
The companies have decided to terminate the Business Combination Agreement due to the current adverse market conditions for Special Purpose Acquisition Company (SPAC) and other factors.
Alan Kestenbaum, Chief Executive Officer and Chairman of Sports Ventures, commented, “Based on current SPAC and stock market conditions, it has been mutually determined that the best option for all parties at this time is to exit the transaction. Namit and his team are at the forefront of the market producing stunning and award winning work which has won awards this year. DNEG has a bright future and we wish everyone every success.”
Namit Malhotra, Chairman and CEO of DNEG, said: “Due to the headwinds in the SPAC market and general market volatility, we have decided to end our SPAC process with Sports Ventures. Alan and the Sports Ventures team have been great partners in this process and we wish them all the best in their future journey. We are incredibly optimistic about the future of DNEG and the company continues to post impressive financial results, with our highest-ever revenue growth announced earlier this week. Our strong pipeline reflects the significant demand in our industry for leading visual effects and animation services, as evidenced by our recently announced multi-year contract extension and renewal agreement for VFX services with Netflix through 2025.”
Sports Ventures will consider other acquisition opportunities depending on market conditions and timing. Sports Ventures Acquisition Corp. is a blank check company formed to conduct a merger-like business combination with a major entertainment company.
DNEG is a leading technology-enhanced visual effects (VFX) and animation company for the creation of feature film, television and multiplatform content. In a recent business update, the company announced above-average revenue performance with strong year-over-year growth and a record pipeline of new business, reflecting unprecedented demand for its visual effects (VFX) and animation services, the company said.
Prime Focus provides film post-production and visual effects services. The company provides visual effects, digital film lab, telecine, editing and motion control for high definition production services. On a consolidated basis, the company reported a net loss of Rs.90.05 crore against a net loss of Rs.23.41 crore in Q4FY22 versus Q4FY21. Net sales increased by 56.7% for the quarter % yoy to Rs.1,086.34 crore.
Prime Focus shares fell 3.94% on the BSE to Rs.65.80.
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