iCandy Interactive Limited (ASX:ICI), a video-game development group listed on the ASX since 2016, is evaluating a potential US listing of its wholly-owned subsidiary, Lemon Sky Studios Sdn Bhd. Lemon Sky Studios is a leading independent game art and animation studio with approximately 19 years of experience supporting global AAA video game titles and major international publishers. The company is considering listing Lemon Sky Studios on NYSE American or another United States securities exchange to support its growth and potentially unlock shareholder value.
iCandy has engaged with potential investment banks and advisors in the US, with a preference for the NYSE American exchange. Lemon Sky Studios aims to position itself as an AI technology-enabled entertainment production company, integrating AI-driven workflows to enhance scalability and efficiency. Indicative valuation discussions have suggested a potential range exceeding iCandy’s current market capitalisation, although the final valuation will depend on market conditions. Lemon Sky Studios is also exploring strategic acquisitions or partnerships.
Subject to the outcome of the potential US listing, iCandy is considering options to return a portion of the equity value in Lemon Sky Studios directly to iCandy shareholders. Structures under consideration include an in-specie distribution of shares, a capital reduction, or other corporate mechanisms. Hamilton Locke has been appointed as Australian legal counsel. The company is also considering a potential equity placement to sophisticated investors to fund the US IPO and other corporate working capital.
iCandy is nearing completion of its FY2024 and FY2025 financial statements, following disruptions related to the alleged improper conduct of a former consultant. The Board considers that additional time to complete the audits may yield a more comprehensive audit outcome and improved disclosure for shareholders. The company will host an investor webinar on 27 March 2026 to provide shareholders with further information. A likely outcome of these factors is that iCandy will be removed from the Official List of the Australian Securities Exchange on 1 April 2026.
