Mollyroe has agreed to acquire the entire issued share capital of Cascade Holding for £4.68 million, satisfied entirely through the issue of 1.76 billion consideration shares to Cascade's vendors.
The AQSE-listed investment company, which has backed AI business opportunities since pivoting from its former identity as Secured Property Developments, has already funded Cascade with £725,000 via convertible loan notes since September 2025.
Cascade is an AI-native, end-to-end film production platform covering script development, storyboarding, asset creation and final edit, built by a team with backgrounds in filmmaking, visual effects and virtual production.
The consideration shares carry a 12-month lock-in plus a further 12-month orderly market period, and will be issued at 0.266p, the same price used for a conditional placing and subscription through Fortified Securities raising £1.93 million net via 454.89 million new shares.
Loan notes worth £445,000 will convert into 178 million shares at 0.25p, and the company plans a 10-for-1 share consolidation once the acquisition, placing and conversion complete.
Because several Cascade vendors, including chief executive Darren Hopkins and chairman Dominic Wheatley, are also Mollyroe shareholders acting in concert, the deal requires a Rule 9 Takeover Code waiver from independent shareholders, with Noel Lyons as the sole independent director recommending approval.
"Cascade presents a compelling growth opportunity for our shareholders", said Hopkins, adding that the platform has "the potential to democratise Hollywood-grade visual storytelling".
Mollyroe intends to rename itself Cascade Studio AI on completion.
Shareholders vote on the resolutions at a general meeting on 9 October, with admission of new shares expected 12 October.
News Intelligence what this means for the company
Mollyroe, an AQSE-listed AI investment company, is acquiring Cascade Holding—an AI film production platform it has already backed with £725,000 in convertible debt—for £4.68 million in shares, and raising £1.93 million via placing to fund the deal. The acquisition requires a Rule 9 Takeover Code waiver because Cascade's vendors, including its CEO and chairman, are also Mollyroe shareholders; the company will rename itself Cascade Studio AI on completion, pivoting from passive investment into direct operation of a single portfolio asset.
The deal transforms Mollyroe from a venture capital investor into an operating company dependent on one AI platform's commercial success. Shareholders must weigh the platform's claimed potential to 'democratise Hollywood-grade visual storytelling' against execution risk in a capital-intensive, competitive film-tech space—and against the conflict of interest embedded in the Rule 9 waiver, where only one independent director recommends approval.
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