SINGAPORE (June 19): YuuZoo Corporation says it has sold a 2.91% stake in its video streaming subsidiary, YuuFlix, for $3 million ($4.1 million) to an unnamed foreign investor which has been fully paid.
The stake corresponds to a valuation of US$100 million, says YuuZoo in a Singapore Exchange (SGX) filing on Wednesday night.
Dogged by complaints of poor corporate governance and weak results, YuuZoo's shares have been suspended since March last year.
The company was placed under investigation by the Commercial Affairs Department after auditors were not able to obtain sufficient appropriate audit evidence to provide an opinion as required in a notice of compliance (NOC) issued the Singapore Exchange.
YuuZoo says YuuFlix has already signed agreements with over 60 content partners who will supply content in entertainment, fashion, beauty, lifestyle, documentaries and gaming.
Moreover, as part of its video and content strategy, YuuZoo had earlier acquired France’s leading DVD distributor Cinram France, which held distribution agreements with several leading global movie studios such as Universal, Fox and Warner.
"The plan was to expand these relationships to also include YuuFlix. As a result of the share trading suspension imposed on YuuZoo by the SGX, the company however lost its French investment," says YuuZoo.
Hence, YuuFlix has decided to focus on local independent content, providing an interactive platform where consumers can buy and view content under various usage models. It is also in discussions with value-adding local marketing partners in Asia, Africa and Europe.
