Acer to Invest in Starbreeze through Two-year Convertible Bond
TAIPEI, TAIWAN (2016-06-25)
Acer Inc. (TWSE: 2353, LSE: ACID) announces its intent to acquire Starbreeze AB’s (First North: STAR) convertible bonds through a private placement transaction. Starbreeze and Acer have reached a term sheet whereby Starbreeze will issue US$9 million (SEK 74.3 million) in a two-year bond convertible to B-shares to Acer Inc. and/or its affiliates under the Board’s mandate.
As part of its long-term strategic investments, Acer expects the investment in Starbreeze to further solidify the collaboration between the two companies. It will also enhance Acer’s position in the virtual reality (VR) ecosystem, which Acer believes has a huge potential beyond PC gaming, and that VR is set to unlock new possibilities for many other industries such as entertainment, retail, transportation, and education.
The term sheet announced today forms the basis for ongoing discussions regarding a definitive agreement, subject to both parties’ Board approval.
Separately, Acer announced today the signing of the definitive agreement between Acer and Starbreeze to form a joint venture for the design, manufacturing, promotion, marketing and sales of the StarVR Virtual Reality (VR) Head-Mounted Display (HMD), confirming the two companies’ onward collaboration.