mm2 Asia has terminated an agreement to dispose of 97.6 million shares in Vividthree Holdings, or 21% of its stake, to Hildrics Asia Growth Fund VCC on Sept 8.
Both parties have mutually agreed to terminate the sale and purchase agreement previously entered into in May due to mm2’s “current circumstances” and the recent market volatility.
“The parties are of the view that the mutual termination is in their respective best interests”.
While mm2 Asia has incurred professional fees and other expenses in relation to the proposed disposal, the termination is not expected to have any material impact on its financial performance for the financial year ending March 31, 2026.
On Sept 1, mm2 announced that it will wind up its cinema subsidiary Cathay Cineplexes. The cinema chain owes rent and other money to seven creditors, mainly landlords where it operates.
On Sept 3 and 5, mm2 announced that it received letters of demand from Walt Disney and Antenna Entertainments for payments due. According to the Sept 3 bourse filing, mm2 owes Walt Disney (Southeast Asia) RM558,193 ($170,820.06) for film license fees and Walt Disney (Malaysia)RM670,318.57 for the same. According to the Sept 5 filing, mm2 owes RM1.3 million to Antenna for film distribution agreements.
Shares in mm2 closed flat at 0.3 cents on Sept 9.
