YuuZoo sells 2.91% stake in video streaming unit for $4.08m

The stake corresponds to a valuation of $136.11m for YuuFlix.

Troubled investment holding company YuuZoo Corporation has received a $4.08m (US$3m) investment from an unnamed foreign investor in exchange for a stake in its streaming video subsidiary YuuFlix, a filing with the Singapore Exchange (SGX) revealed.

Whilst the company’s shares have been suspended since March 2018, the undisclosed investor has acquired a 2.91% stake into YuuFlix, corresponding to a valuation of $136.11m (US$100m) for the subsidiary.

YuuFlix has reportedly signed agreements with more than 60 content partners who supply content in entertainment, fashion, beauty, lifestyle, documentaries and gaming. YuuZoo had earlier acquired France’s DVD distributor Cinram France, which held distribution agreements with global movie studios such as Universal, Fox and Warner.

“The plan was to expand these relationships to also include YuuFlix,” the firm noted. However, as a result of the share trading suspension imposed on YuuZoo by SGX, the company lost its French investment.

The firm also revealed that YuuFlix is in discussions with value-adding local marketing partners in Asia, Africa and Europe.

The development comes after YuuZoo’s CEO, referred to only as Mohandas, announced he would step down over the share trading suspension imposed by the SGX in March. According to a series of announcements, the firm was also forced to close all of its subsidiaries and terminate the employment agreements of all its employees in Singapore.

Also read: YuuZoo shuts down; CEO resigns over trade suspension

YuuZoo cited “a direct consequence” of the SGX’s decision to suspend the trading in YuuZoo’s shares after YuuZoo’s previous auditor RT LLP failed to reply to two questions posed by SGX, then asked the Commercial Affairs Department (CAD) to commence an investigation of the company.