Animoca Brands health and fitness subsidiary OliveX to list on National Stock Exchange

OliveX National Stock Exchange NSX IPO Animoca Brands health and fitness KARA Smart Fitness Mirror
Digital health and fitness company OliveX is aiming to raise $2m and list on the NSX.

Unlisted game developer Animoca Brands has announced plans to list its digital health and fitness subsidiary OliveX Holdings Limited on Australia’s National Stock Exchange (NSX).

OliveX has launched an offering of 10 million shares at an issue price of $0.20 each to raise a minimum $2 million before costs, with the ability to accept an additional 5 million shares to raise a further $1m.

The company plans to advance its online health and wellbeing platform in a global industry estimated at $6.12 trillion.

Funds will be used to drive the sales and marketing of its health, fitness and wellbeing apps and further development of its artificial intelligence technology.

The company will also invest in growing its library of fitness content and opening a head office in Australia.

NSX debut

A successful public offering will secure OliveX’s debut onto the country’s secondary market, aimed at smaller entities and based solely on electronic trading.

Animoca Brands said OliveX’s core business would remain distinct from its own and it would provide commercial and technical support to ensure the success of its prospectus.

“OliveX will provide world class content, rich engagement and unique branding opportunities…. [to] become the leading experiential marketing platform in the health and fitness space,” it said.

Lucrative market

OliveX was launched in 2018 to target lucrative market segments such as health and fitness apps, wearable technology and Internet of Things (IoT).

It collaborates with Animoca Brands to develop and publish a range of mobile apps including those powered by artificial intelligence, which leverage gamification to address user wellbeing.

OliveX started with a line-up of mobile products including pedometer and running game Garfield Fit; voice-based virtual coaching app 22 Pushups; machine learning AI app KAT Squat Trainer; and top-ranked basketball coaching paid app Coachbase acquired by Animoca Brands in 2017.

KARA Smart Fitness Mirror

It has since created KARA Smart Fitness Mirror – a complete hardware and software solution which employs AI technology and gamification for at-home fitness.

The mirror provides users with an interactive workout using a display monitor and camera and allows for real-time personalised coaching and feedback.

Content is also available through the KARA Smart Fitness live streaming and interactive digital app which delivers premium, on-demand fitness content and classes including workouts with celebrity fitness trainers and social media wellness influencers.

The two products are available separately or bundled, on tiered subscription rates.

OliveX plans to grow KARA Smart Fitness Mirror sales initially in the Hong Kong market, followed by Australia, Singapore and other parts of the world.

Majority shareholding

Animoca Brands currently has an 78% majority shareholding in OliveX, with the remainder held by the subsidiary’s board and management (prior to the future conversion of convertible notes and SAFE instruments in OliveX).

“We are very excited about the launch of our health and fitness subsidiary, which provides us with an entry point into lucrative markets,” the company said at the time.

“OliveX launches with products which will contribute to our broader revenue profile, and we are pursuing opportunities to grow these offerings in the near term as part of our strategy to diversify and expand.”

COVID-19 changes

According to its prospectus, OliveX’s public offering may benefit from recent changes to the health and fitness landscape brought about by COVID-19.

The forced closure of gyms, dance studios and yoga venues has impacted the industry, with many people turning to online fitness.

“While such measures are temporary, the effects of a mass digital migration to online offerings will fundamentally change how the industry operates in a post-COVID-19 world,” the company said.

“An element of gym-goers will not return to exercising the way they did before, preferring to take up virtual fitness in the home.”

OliveX said it was well-positioned to serve a changing market and may even see a rise in patronage should a future public health crisis force the world back into mandatory self-isolation.

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