mig33 attracts cornerstone investor

Social entertainment firm mig33, which is in the middle of a reverse takeover of Latin Gold, has secured more than $10 million in investment from Hong Kong-listed handset manufacturer FIH Mobile.

mig33 said it had secured an initial US$2.2 million in funding from FIH after it purchased existing and new shares in migg33’s holding company Project Goth Inc.

FIH will also invest a further US$7.4 million in the company by purchasing 40 million Latin Gold shares at 20 cents per share upon completion of the reverse takeover transaction.

FIH’s investment in mig33 will take its interest in the social entertainment company to 19.9 per cent.

Project Goth chief executive and co-founder Steven Goh said securing the investment from FIH was a strategic move for the company.

“We’re excited to be working with one of the great leaders in mobile, and securing this relationship will be pivotal in our ambitions to make the company as great as it can be,” Mr Goh said.

mig33 was developed and launched in Perth in 2007 by Mr Goh.

The company is seeking to list on the ASX through a reverse takeover of WA-based Latin Gold.

The two companies announced the plans in January which would see mig33 take a 69.5 per cent stake in the gold explorer.

mig33 also recently announced the acquisition of artist entertainment community, alivenotdead.com in Hong Kong. 

FIH is listed in Hong Kong and has a market capitalisation of about US$4 billion. Hon Hai Precision Industry Company, which has a 67 per cent stake in FIH, has annual revenue of about US$132 billion and a market capitalisation of about US$33.7 billion.

mig33 said the introduction of FIH as a significant shareholder would provide the company with the opportunity to substantially accelerate its growth plans.

This includes the planned establishment of a development centre in Taiwan, where Hon Hai is based, which focus on business development and extending the company’s reach into the mobile network.