OliveX raises $9m to acquire Zombies Run game developer Six to Start

OliveX Zombies Run game developer Six to Start
OliveX’s acquisition of Six to Start includes a story-based fitness app where users have to run faster to avoid being eaten by zombies.

Digital health fitness company OliveX (NSX: OLX) revealed it has received firm commitments from investors to raise almost $9 million to fund the acquisition of independent game developer Six to Start.

The London-based developer specialises in ‘story-like games’ with its greatest claim to fame being the best-selling smartphone fitness app Zombies, Run!

OliveX entered into a share purchase agreement in March to acquire 100% of Six to Start for an initial cash and share consideration equivalent to $8.48 million and deferred, performance-based consideration of up to $3.64 million in cash and shares.

Today it announced the “significantly oversubscribed” placement of 8.8 million shares priced at $1 each as a result of strong interest from both existing shareholders and new institutional and sophisticated investors.

The funds are expected to finance the cash consideration obligations of the acquisition with the remaining balance going towards working capital.

OliveX chief executive officer Keith Rumjahn said the overwhelming interest in the capital raising is a clear endorsement of the Six to Start acquisition and further validation of the company’s strategy.

“We look forward to the next stage of the company’s evolution and growth and to providing updates as we continue to strengthen our position in gamifying the digital health and fitness sector,” he added.

OliveX is expecting the receipt of funds and issue of shares in mid-June.

Zombies, Run!

Six to Start’s flagship game is Zombies, Run! which combines interval-based training with an audio storytelling of a zombie apocalypse.

Players are set on a mission to collect supplies to build up their base and have to speed up when prompted to avoid being eaten by zombies.

The game has been named the world’s top gamified fitness app, recording more than 8.5 million downloads.

In addition, Six to Start has developed The Walk, the first smartphone fitness game to be funded by the United Kingdom’s Department of Health, as well as games and fiction for the BBC, Penguin and Macmillan.

It also conducts research and development for companies including Disney Imagineering, Microsoft and the British Museum.

Investor interest from new and existing shareholders

OliveX listed on Australia’s second largest bourse, the National Stock Exchange of Australia (NSX) last August after raising more than $2 million.

Its original parent company was unlisted game developer Animoca Brands, which has retained a major shareholding and board presence with its founder and chairperson Yat Siu being a non-executive director of OliveX.

OliveX said Animoca Brands, along with another existing shareholder Gym Aesthetics GmBH, has committed additional funds to the placement.

New investors joining the register as a result of the placement include EVG Holdings, GBV Capital, as well as Gameberry Inc and Blocore founder Mr Hyung Cheol (James) Lim.

Other OliveX brands

OliveX’s flagship product is the KARA Smart Fitness Mirror and associated subscription-based digital applications that deliver fitness-related content and classes from celebrity trainers and wellness influencers from around the globe.

In late 2020, the company also acquired UK-based Volution, a software platform used by gym owners that collates customer data with the aim of increasing gym profits and providing virtual experiences for members.

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