American Ent. & Animation Corp., a public shell company seeking acquisitions in the animation industry, has rescinded its offer from last October to acquire Korean animation house Cyper Ent. Inc.
Cyper, a private company, was in negotiations to go public through American, in order to penetrate the North American market and raise equity financing to grow the company. But as American’s Marc Hazout explains, Cyper "materially breached certain obligations under their administration contract. Administrating a public entity is quite a financial responsibility and they were not able to meet those responsibilities." In short, Hazout says, "they misrepresented the status of their company."
Part of the initial agreement between American and Cyper involved a reverse merger for Cyper from an investment banking house. To facilitate the reverse merger, 20 million shares of American’s common stock were issued to Cyper. As a result of the rescission, those shares have been cancelled.
Cyper has produced a number of award-winning CG shorts including Angel, which won 1st prize at the 2001 Japan Digital Contents Grand Prix and was selected for this year’s Annecy and other high-profile int’l film festivals.
The production house first got the attention of American Ent. & Animation at a NATPE show in Vegas, where its work was being screened. Cyper has returned to private company status.
American Ent. & Animation is in negotiations to acquire other animations houses looking to go public, including a much larger domestic company with "notable work." No details can be discussed at this time.