One of the Australian listed resources company is planning to acquire a huge stake in one of the food groups in China which will bear exclusive rights for manufacturing and distributing the widely-known Candy Crush brand products across China.
Resource Star (RSL) which is a mineral and a rare earth explorer which has a market capitalization of around US$6.44 million along with a share price of 1 cent, has agreed with due conditions to take over about 60% stake in the Sugar Dragon company at a cost of US$4.12 million, which will follow with a due diligence procedure. The process is because the company is anticipated to witness a ‘material revenue stream’ before penetrating in the candy industry in China.
The Sugar Dragon candy company of China has 72% of Okmo Asia. This company holds an special license of four years for production and sales of Candy Crush products across Hong Kong, China, Macau, and Taiwan. King.com, the owner of the Candy Crush game is listed on the U.S. NASDAQ exchange, which has received an upfront a royalty payment before hand of around US$500,000 from Okmo Asia for the provided license.
Candy Crush is a worldwide and highly popular mobile game which has around 120 million users every day across the globe. This number includes around 48 million from China. The huge popularity is despite the fact that the game is launched in the nation in the month of August in 2014. The Resource Star Company stated that the Candy Crush trend is proven all over the world and because of the launch of this game in China; its branded confectionery has tremendous potential to reach around US$13.9 billion every year in the confectionery market of China.