iCandy Interactive (ASX: ICI) has announced the iCandy Lemon Sky Strategic Review alongside a senior appointment, signalling a pivotal moment for shareholders. Directors believe Lemon Sky’s value materially exceeds iCandy’s current market capitalisation, prompting exploration of strategic options including an overseas listing or divestment. The announcement follows contract wins exceeding A$1 million in the past six weeks.
iCandy explores strategic options to unlock Lemon Sky value
The iCandy Lemon Sky Strategic Review centres on unlocking what directors consider to be significant undervalued holdings within the company’s subsidiary, Lemon Sky Studios. Strategic options under consideration include a public listing of Lemon Sky on a globally significant securities exchange, or a full or partial divestment for cash or equity in a larger entity.
No decision has been made, and any transaction remains subject to shareholder and regulatory approvals. The company acknowledges the significant costs associated with maintaining an ASX listing as a factor in the review.
Recent contract momentum provides context for management’s optimism. Wins totalling over A$1 million in the last six weeks include a 3D art and animation project featuring globally recognised intellectual property, and a multimillion-dollar animation television series agreed in principle (awaiting formal documentation). Repeat customers in South Korea and Japan have also re-engaged Lemon Sky’s services.
The board remains cautiously optimistic regarding Lemon Sky’s medium-term prospects within the broader video gaming market.
Richard Bereish joins as Head of Global Partnerships
Richard Bereish has been appointed Head of Global Partnerships at Lemon Sky Studios, a role designed to strengthen the subsidiary’s ability to secure AAA partnerships with major game developers and publishers worldwide. The appointment forms part of iCandy’s broader leadership and talent development initiatives.
Mr Bereish will lead Lemon Sky Studios’ global partnership initiatives, supporting long-term, scalable production collaborations with AAA game developers and publishers. His responsibilities include engaging with potential collaborators and clients across the international gaming industry.
Mr Bereish’s experience includes:
- Electronic Arts (senior leadership role)
- Codemasters (senior leadership role)
- Sony Computer Entertainment (Evolution Studios, senior leadership role)
- Midway Games (senior leadership role)
- Contributing to globally recognised franchises including FIFA, Madden, GRID, and DRIVECLUB
The appointment signals iCandy’s intent to scale high-value partnerships and strengthen management capability as Lemon Sky continues to evolve.
What does a Head of Global Partnerships do?
AAA game development increasingly relies on outsourced art studios like Lemon Sky to handle specialised creative production. A Head of Global Partnerships is responsible for securing and maintaining relationships with major publishers and developers who require these services.
This role matters because stronger partnerships typically translate to more stable, recurring revenue. By placing a senior industry veteran in this position, iCandy aims to reduce execution risk on its business development strategy and open doors to larger, more lucrative contracts.
Contract momentum builds into 2026
Lemon Sky has secured multiple contracts in early 2026, with aggregate value exceeding A$1 million. The wins demonstrate geographic diversification and repeat customer engagement:
- 3D art and animation project featuring a globally recognised IP (immersive experience) – Contracted
- Multimillion-dollar animation TV series – Agreed in principle (awaiting formal contractual documentation)
- Repeat engagements with customers in South Korea and Japan – Re-engaged
- Marvel Deadpool’s VR (Twisted Pixel Games) – Recently completed collaboration
- Enshrouded (Keen Games) – Recently completed collaboration
- Playdate with Winnie the Pooh Season 3 (Oddbot Animation) – Recently completed collaboration
| Project Type | Partner/Client | Status |
|---|---|---|
| 3D Art & Animation (Immersive Experience) | Undisclosed (Global IP) | Contracted |
| Animation TV Series | Undisclosed | Agreed in principle |
| Repeat Engagements | South Korea & Japan clients | Re-engaged |
| Marvel Deadpool’s VR | Twisted Pixel Games | Completed |
| Enshrouded | Keen Games | Completed |
| Playdate with Winnie the Pooh Season 3 | Oddbot Animation | Completed |
Recent collaborations with Twisted Pixel Games, Keen Games, and Oddbot Animation have garnered international accolades, serving as credibility markers for Lemon Sky’s service quality. The pipeline visibility is improving, and repeat customer engagement indicates sticky relationships.
Global business development push
Lemon Sky Studios operates teams across the USA, UK, Japan, South Korea, and Southeast Asia. The business development team has maintained an active global presence at industry events:
- Dice Summit (Las Vegas) – Attended
- GDS GameDev Summit (Philippines) – Attended
- Kidscreen Summit (San Diego) – Upcoming
- Game Developer Conference (San Francisco) – Upcoming
This proactive market positioning supports Lemon Sky’s ability to secure new partnerships and maintain visibility with major publishers.
AI-enabled workflows under exploration
Lemon Sky is exploring the use of AI-enabled tools and workflows to support its creative production capabilities. These initiatives are at various stages of evaluation and implementation.
Management states the initiatives have the potential to offer outstanding efficiency gains and attract a broader customer base. AI integration could improve margins and competitive positioning if executed successfully, though the initiatives remain at an early stage.
Strategic review: what shareholders should know
The iCandy Lemon Sky Strategic Review is actively exploring options with advisers. Strategic and corporate initiatives under consideration include:
- Public listing of Lemon Sky on a globally significant securities exchange
- Full divestment for cash or equity in another, larger, entity
- Partial divestment for cash or equity in another, larger, entity
Directors believe there is significant value in Lemon Sky that materially exceeds iCandy’s market capitalisation at its last traded price on the ASX. The company is also cognisant of the significant costs associated with maintaining an ASX listing.
iCandy Directors’ Assessment
“iCandy directors consider that there is significant value in Lemon Sky that materially exceeds the Company’s market capitalisation at its last traded price on ASX.”
The primary outcome being sought is for iCandy shareholders to directly benefit from what the company considers to be a holding that is materially undervalued in the current holding structure and listing status. No decision has been made, nor is there certainty of any transaction eventuating.
What are the possible outcomes?
The strategic review presents three main pathways for shareholders:
1. Overseas listing of Lemon Sky: Lemon Sky could list separately on a major international exchange, potentially providing shareholders with direct exposure to the subsidiary’s value through a spin-off or distribution of shares.
2. Sale for cash: iCandy could sell Lemon Sky to another party for cash proceeds, which would then be distributed to shareholders or reinvested in other assets.
3. Equity swap into a larger entity: Lemon Sky could be exchanged for equity in a larger, potentially more liquid entity, giving iCandy shareholders indirect exposure through shares in the acquiring company.
Any outcome would require shareholder and regulatory approval. The review creates optionality for shareholders, with potential value crystallisation through listing, sale, or merger representing a key catalyst to monitor.
The appointment of Richard Bereish strengthens Lemon Sky’s execution capability on business development, while recent contract wins totalling over A$1 million build momentum heading into 2026. The strategic review could unlock shareholder value if management successfully executes on one of the pathways under consideration.
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