REG - Winking Studios Ltd - Further Phase of Joint AI Development Project

Winking StudiosAnnouncement

05/12/2024 07:00

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RNS Number : 8470O  Winking Studios Limited  05 December 2024

 

5 December 2024

 

Winking Studios Limited

(the "Company" and together with its subsidiaries, the "Group")

 

Further Phase of Joint AI Development Project

 

Winking Studios Limited (AIM:WKS, SGX:WKS), the AAA Art Outsourcing and Game
Development business, is pleased to announce that its wholly-owned
subsidiaries namely, Winking Entertainment Corporation, Shanghai Winking
Entertainment Ltd, and Nanjing Winking Entertainment Ltd ("Winking Entities"),
have on 5 December 2024, entered into a supplementary agreement to the second
phase of joint artificial intelligence ("AI") development project for the
co-development of a three-dimensional animation AI generation software (the
"AI Tool") (the "AI Project Supplementary Agreement") with Acer Incorporated
("Acer Inc."), for the duration from 1 November 2024 to 31 December 2024.

 

The AI Project Supplementary Agreement follows the first and second phase of
the AI project completed earlier this year, which, together with earlier
phases, will amount to an aggregate value of US$1,000,000 invested in the AI
Tool (the "AI Project"). Under the AI Project Supplementary Agreement, Acer
Inc. will contribute US$200,000 towards the further research, development and
testing of the AI Tool by the Winking Entities, which will contribute the
manpower, software and hardware necessary for the AI Tool. Both Winking and
Acer may use the general research and development outcomes without charge for
their business purposes. If a new 'invention' is generated from the AI Project
and intellectual property rights are applied for, Winking Entities (on a
collective basis) and Acer Inc. shall each have a 50% ownership in the
intellectual property rights applied for.

 

Rationale and Benefit of the AI Project

 

'GenMotion.AI' is the core focus of the AI Project, and the AI Project
Supplementary Agreement is to supplement the second phase of the AI Project
whereby the parties will continue to establish a joint development framework
with a view to further integrating resources and research and development
capabilities to strengthen the integration of AI applications and game
software technology, and to enhance or optimise the existing project outcomes.

 

GenMotion.AI is an AI tool designed specifically for 3D animation which
enables users to create detailed 3D animations directly from text input by
leveraging carefully curated training data sourced from the gaming industry to
ensure accuracy in its 3D design. The GenMotion.AI software was created
utilising a deep understanding of animators' workflows and needs and is
ultimately aimed at enhancing user efficiency and creativity. All training
data used by GenMotion.AI is proprietary, copyright protected and documented
in a transparent fashion to ensure traceability and to guarantee data
integrity and authenticity. Whilst GenMotion.AI was initially designed for
targeting game animators, the Board of Directors of the Company (the "Board"
or "Directors") believes that it has the potential to offer a wide range of
professional features allowing for precise customisation to meet detailed
animation needs.

 

The Group seeks to be at the forefront of exploring the use of AI in the
creation and development of digital art assets and games to increase its
workflow and to enhance its work quality. The Directors believe that the
adoption of AI by the industry at large can improve efficiency and enhance the
visual quality of art assets, as well as allow game artists to streamline
their workflow and focus on more complex and creative tasks that lead to
faster production cycles.

 

Related Party Transaction (Under Rule 13 of the AIM Rules for Companies)

 

Acer Inc., via its subsidiaries namely, Acer Gaming and Acer SoftCapital Inc.,
holds approximately 64.16% of the Company's issued share capital and is
therefore a related party as defined by the AIM Rules for Companies.
Accordingly, the AI Project Supplementary Agreement is a related party
transaction pursuant to Rule 13 of the AIM Rules for Companies.

 

The independent Directors in respect of the AI Project Supplementary
Agreement, being the full board except for Mr Kao Shu-Kuo (Non-Executive
Director of the Company, who is Chief Operating Officer of Acer Inc. and a
director of Acer Gaming Inc.), having consulted with Strand Hanson Limited,
the Company's Nominated Adviser, consider the terms of the related party
transaction to be fair and reasonable insofar as shareholders of the Company
are concerned.

 

Interested Person Transaction ("IPT") (under Catalist Rules (as defined
below))

 

AI Project Supplementary Agreement constitutes an IPT under Chapter 9 of the
Listing Manual Section B: Rules of Catalist of the Singapore Exchange
Securities Trading Limited (the "Catalist Rules"). However, the AI Project
Supplementary Agreement falls within the scope of the prevailing IPT general
mandate approved by shareholders at the extraordinary meeting held on 28
October 2024.

 

Johnny Jan, Executive Director and Chief Executive Officer (Founder) of
Winking Studios Limited, said:

"The AI Project Supplementary Agreement with Acer Inc. represents a pivotal
moment in our journey to revolutionise 3D animation. GenMotion.AI is not just
a tool; it is a testament to our commitment to empower animators by
integrating advanced AI capabilities into their workflows. This collaboration
combines Acer Inc.'s technological leadership with Winking Studio Limited's
expertise in art production, paving the way for groundbreaking innovations in
animation and digital content creation. By focusing on enhancing productivity
and creativity while ensuring data integrity and copyright compliance, we are
setting a new benchmark for AI applications in the gaming and animation
industries. We are excited to continue this partnership with Acer Inc. as we
explore the significant potential of AI-driven solutions."

 

Jerry Kao, Chief Operating Officer of Acer Inc. and a member of the Board of
Winking Studios Limited, commented:

"Our partnership with Winking Studios Limited marks a significant step forward
in integrating AI into the gaming and digital art industries. The AI Project
Supplementary Agreement underscores our shared vision to push the boundaries
of innovation with GenMotion.AI, a tool designed to revolutionise 3D animation
creation. By leveraging cutting-edge AI technology and combining our
expertise, we are not only redefining industry standards but also empowering
animators and creators to unlock new levels of creativity and productivity.
This collaboration highlights Acer Inc.'s commitment to advancing AI-driven
applications while delivering transformative value to the gaming and animation
ecosystem. We are proud to continue this journey with Winking Studios Limited
and look forward to shaping the future of digital content creation together."

 

 

Enquiries

 Singapore                                                              UK
 Winking Studios Limited                                                Via Alma

 Johnny Jan, Executive Director and Chief Executive Officer (Founder)

 Oliver Yen, Finance Director and Group Chief Financial Officer

 8PR Asia (Singapore Investor Relations)                                Alma Strategic Communications

 Alex Tan                                                               Justine James / David Ison / Emma Thompson

 +65 9451 5252                                                          +44 (0)20 3405 0205

  alex.tan@8prasia.com (mailto:alex.tan@8prasia.com)                    WKS@almastrategic.com (mailto:WKS@almastrategic.com)

 PrimePartners Corporate Finance Pte. Ltd.                              Strand Hanson Limited

 (Sponsor)                                                              (Financial and Nominated Adviser)

 Foo Jien Jieng                                                         James Harris / James Bellman

 sponsorship@ppcf.com.sg                                                 +44 (0)20 7409 3494

                                                                        SP Angel Corporate Finance LLP (Broker)

                                                                        Stuart Gledhill / Charlie Bouverat (Corporate Finance)

                                                                        Abigail Wayne / Rob Rees (Corporate Broking)

                                                                        +44 (0)20 3470 0470

 

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