Allrites Holdings Pte. Ltd., a Singapore-based film and television content rights marketplace, is expected to be listed on the Nasdaq Global Market after merging with United States-listed blank check company Aura FAT Projects Acquisition Corp (AFAR).

The duo said in a statement on Monday that AFAR has signed a definitive business combination agreement with Allrites, that will result in Allrites becoming a wholly-owned
subsidiary of AFAR.

Under the terms of the proposed transaction, Allrites will combine with AFAR and will become a publicly traded entity.

The transaction reflects an estimated proforma enterprise value for Allrites of $92 million, with another potential $18 million in earnout over two years (subject to achieving certain target annualized recurring revenue).

Upon the closing of the transaction, Allrites will continue to be led by its Founder and Chief Executive Officer Riaz Mehta, an experienced senior corporate executive in Singapore.

“As a first mover in the democratization of content, we have developed a platform that solves the numerous pain points of video content sourcing and curation, licensing and digital rights management,” said Riaz Mehta.

“We operate in a large and growing trillion-dollar market and are targeting $100 million in subscription revenue in the near term,

“This announcement of Allrites’ business combination with AFAR represents the next major milestone in our journey to have the needed resources and talent to build and expand our footprint and next generation technology. AFAR will help us to fulfill that ambition,” he added.

Allrites is a global business to business (B2B) content marketplace and the owner of cutting-edge proprietary content as a service (CaaS) technology for film & TV content rights for buyers of film and TV content including established and emerging broadcasters and streaming platforms and sellers such as major studios, independent producers and production companies around the world.

Allrites uses their cutting-edge technology to scale the distribution of content by removing the friction introduced through manual processes and also by introducing an innovative content licensing model that addresses the core pain points of buyers and sellers in the eco-system.

Cited an industry report, the statement said the global entertainment and media (E&M) industry’s revenues will approach $3 trillion in revenues by 2026 and is expected to expand at a compound annual growth rate (CAGR) of 6.34 percent from 2022-2027, reaching $3.34 trillion by 2027.

“Allrites is a global pioneer with its proprietary Content as a Service technology platform,

“We are proud to merge with a homegrown company in Singapore that, already, is high growth, profitable with high gross margins, and a sticky recurring revenue model,” said Tristan Lo, Chairman of AFAR.

“The Nasdaq is the right home for Allrites with more than half of its clients based in the United States,

“Access to public markets will accelerate Allrites’ ability to drive growth and innovation in an industry ripe for disruption,” he added.

AFAR is listed on the Nasdaq formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

While AFAR may pursue an initial business combination target in any business or industry, it intends to focus on new emerging technology company targets in Southeast Asia and Australia.

In April 2022, AFAR consummated a $115 million initial public offering of 11.5 million units.

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