Galleon Holdings, the AIM-listed entertainment and media company, is to acquire a 19% stake in the US business Dragonfruit Entertainment.
Galleon will contribute a total of £252,000 ($347,000) to the working capital of the business, through $250,000 in cash and 426,000 new ordinary worth one pence each. The shares will rank pari passu with those existing in Galleon and will be admitted to AIM on February 2, 2009.
This investment marks a strengthening of the relationship between the two companies and provides Galleon with an operating presence in the US.
Dragonfruit Studios was launched in January 2008 by Michael Koziol and Melissa Honabach, who previously founded interactive agency Ant Farm Interactive in 1999, which they sold to Nurun in 2004.
Stephen Green, chief executive officer of Galleon, said: “Michael and Melissa have a proven track record of building successful businesses.
“Their knowledge of the North American market, digital media expertise and network of contacts are highly complementary to our own and we are confident that this partnership will help Galleon expand its entertainment brands more rapidly into the US and internationally.”
© Crimson Business Ltd. 2009