NFT Investments, an incubator specializing in the market for non-fungible tokens (“NFTs”), has proposed the acquisition of Pluto Digital PLC, a crypto technology and venture company, for a consideration of £96m.
The acquisition, which is conditional on shareholder approval, will create a significant global metaverse company and advance NFT’s investments in the non-fungible tokens sector as the Pluto Ventures division has invested “heavily” in NFTs and NFT gaming.
Pluto is currently working alongside Maze Theory to release video games that incorporate token economics to “empower the next generation of gamers”. Blockchain games, also known as Play2Earn, have created substantial value led by Sky Mavis and Axie Infinite, with respective valuations of $3bn and $19bn
Under the terms of the proposed acquisition, NFT will acquire 100 per cent of the issued share capital of Pluto for a consideration to be satisfied by the issue of 2.4 billion new ordinary shares in NFT (at 4p per new NFT share valuing Pluto Digital PLC at £96m).
The acquisition will be a reverse takeover of NFT under the AQSE Rules and will be subject to the UK Takeover Code. The acquisition, if completed, will result in Pluto shareholders holding 70.5 per cent of the enlarged business on completion.
NFT will have a 90-day exclusivity period to conduct due diligence on Pluto. Concurrent with, and as a condition to, the completion of the acquisition, three Pluto team members will join the company as directors and Jonathan Bixby will continue to serve as executive chairman.
NFT will also loan Pluto £5m on signing the LOI, the proceeds of which will be used to complete the strategic acquisition of a number of technology companies in the metaverse sector.