Sports Ventures Acquisition Corp. and DNEG mutually agree to terminate Business Combination Agreement

DNEG ("DNEG" or "the Company"), a leading technology-enabled visual effects (VFX) and animation company for the creation of feature film, television and multiplatform content, and Sports Ventures Acquisition Corp. ("Sports Ventures") (NASDAQ: AKIC), a publicly-traded special purpose acquisition company, announced today that the companies have mutually agreed to terminate their previously announced business combination agreement, effective immediately.

The companies decided to terminate the business combination agreement as a result of current unfavorable SPAC market conditions and other factors.

DNEG recently announced revenue outperformance in a business update with strong year-over-year growth and a record pipeline of new business reflecting unprecedented demand for its visual effects (VFX) and animation services.

Alan Kestenbaum, Chief Executive Officer and Chairman of the Board of Sports Ventures, commented, "Due to current SPAC and equity market conditions, it was mutually determined that the best option for all parties at this time is to terminate the transaction. Namit and his team are leaders in the market, producing stunning and award-winning work that swept the awards this year. DNEG has a bright future and we wish everyone there much success."

Namit Malhotra, DNEG Chairman and CEO, commented, "Due to the headwinds in the SPAC marketplace and general market volatility, we have decided to terminate our SPAC process with Sports Ventures. Alan and the team at Sports Ventures have been great partners in this process, and we wish them well as they move forward."

Malhotra continued, "We feel incredibly optimistic about DNEG's future and the Company continues to demonstrate impressive financial results, with our highest-ever revenue growth announced earlier this week. Our strong pipeline reflects the significant demand for our industry-leading visual effects and animation services, as evidenced by our recently announced multi-year deal extension and VFX services renewal agreement with Netflix through 2025."

Sports Ventures will consider other acquisition opportunities, subject to market conditions and timing.

Shares of Prime Focus Limited was last trading in BSE at Rs. 68.50 as compared to the previous close of Rs. 71.10. The total number of shares traded during the day was 2206 in over 95 trades.

The stock hit an intraday high of Rs. 74.35 and intraday low of 68.05. The net turnover during the day was Rs. 157196.00.

Source : Equity Bulls

Keywords

PrimeFocus INE367G01038 DNEG SportsVenturesAcquisitionCorp SportsVentures AKIC Termination