SINGAPORE: Spackman Entertainment Group Limited, one of Korea’s leading entertainment production groups founded by media investor Charles Spackman, has entered into a sale and purchase agreement with four independent third parties to acquire the entire issued and paid-up share capital of Simplex Films Limited. Simplex is an early stage film production firm headed by veteran Korean producer, Lim Ji-young. Simplex intends to produce top quality films to be theatrically released and distributed in Korea and overseas. Simplex shall first release its films initially in Korea and subsequently in post-theatrical markets such as cable television, broadcast television, IPTV, video-on-demand, and home video/DVD, etc. John Ko, Chief Executive Officer of Spackman Entertainment Group said, “Through the acquisition of Simplex, the Group shall be able to expand its film production capacity and look forward to positive contribution from Simplex’s maiden film within this fiscal year.” The total purchase consideration for the Proposed Acquisition shall be 165,000,000 newly issued ordinary shares of the Company at S$0.02 per share, which was arrived at following arm’s length negotiations on a willing buyer, willing seller basis, as well as reviewing the average of the Group’s past one month’s volume weighted average price of approximately S$0.018, and taking into account, inter alia, the Target Company’s unaudited net profit before tax of KRW72,288,446 (approximately S$83,743) for the period from 1 January 2019 to 31 May 2019. The Group believes that the Proposed Acquisition can enable the Group to be better positioned to invest into Simplex’s pipeline of -quality films in terms of script and casting in order to seek higher returns as both a film producer and an investor. The Proposed Acquisition is in line with the Group’s strategy of aggressively looking out for acquisitions that can add accretive value to the Group’s existing film production business. The Group views that Simplex is equipped with the capability to produce top quality films based on Ms. Lim Ji-young’s track record and experience in film production. The Proposed Acquisition also allows the sharing of networks and resources to bring about higher business synergy and efficiency in the Group’s film production business segment.