Saudi Arabia’s NEOM initiative is set to make a confident stride into the Web3 gaming and investment realm with a substantial $50 million investment in Animoca Brands.
The investment arm of NEOM has strategically partnered with Animoca to advance Web3 projects in harmony with Saudi Arabia’s Vision 2030 strategy.
In an announcement on Tuesday, it was revealed that half of the $50 million investment would be channeled through convertible notes, featuring a capped conversion price of $4.50 AUD per share. The remaining half would be deployed to acquire Animoca shares from the secondary market.
Despite Animoca’s delisting from the Australian Securities Exchange (ASX) in 2020, it continues to trade on the secondary market.
The completion of the financing agreement for the convertible notes is contingent on meeting agreed-upon conditions.
Animoca Brands is poised to collaborate closely with NEOM in crafting Web3 business services for global utilization, with a specific emphasis on technological advancement in Riyadh and the NEOM area.
While specifics about the projects within the NEOM ecosystem remain undisclosed, an Animoca Brands spokesperson noted that initiatives are currently in the planning phase.
NEOM, a visionary project by Saudi Arabia, envisions a new international city and economic zone in the northwestern part of the country. It aspires to be a center for innovation, technology, and sustainable development, steering the Saudi economy away from traditional oil dependency.
Investing in Web3 initiatives aligns seamlessly with NEOM’s vision of being a trailblazer in technological innovation.
Yat Siu, Animoca’s executive chairman, expressed excitement about the partnership with NEOM, emphasizing the project’s ambition to redefine how people live, work, and play through innovation and technology.
NEOM’s potential to fully harness blockchain’s power is seen as groundbreaking, marking it as a pioneer in this emerging meta-nation within the Web3 ecosystem.
Saudi Arabia has previously disclosed investments in approximately 40 U.S. venture capital firms, many of which are actively involved in crypto, blockchain, and Web3 ventures. Sanabil, associated with Saudi’s sovereign wealth entity, annually allocates around $2 billion to support businesses with innovative models, holding stakes in firms such as Andreessen Horowitz (a16z), Polychain Capital, and Peter Thiel-backed Valar Ventures.