• Exploring listing of wholly-owned Lemon Sky Studios on NYSE American
• Lemon Sky Studios to position as AI-enabled entertainment production company
• Considering options to return value to iCandy shareholders

iCandy Interactive Limited (ASX:ICI) is pleased to provide an update on various corporate initiatives, primarily exploring the listing of its wholly owned Lemon Sky Studios Sdn Bhd ('Lemon Sky Studios') on a US securities exchange, intended to unlock significant value for iCandy shareholders. The company is currently evaluating a potential listing of Lemon Sky Studios on NYSE American or another US exchange as part of a broader strategy to support the continued growth of the Lemon Sky business and potentially unlock shareholder value. Lemon Sky Studios is one of the world's leading independent game art and animation studios, with approximately 19 years of operating history supporting numerous global AAA video game titles and major international publishers and developers. The company intends to position Lemon Sky Studios as an AI technology-enabled entertainment production company, leveraging its industry relationships while integrating AI-driven production workflows and automation technologies. Subject to the outcome of any potential US listing of Lemon Sky Studios, iCandy is considering options to return a portion of the equity value in Lemon Sky Studios directly to iCandy shareholders, including an in-specie distribution of shares, a capital reduction, or other corporate mechanisms. The company has also appointed legal counsel to determine the most appropriate structure for any such transaction. Additionally, the company is nearing completion of its FY2024 and FY2025 financial statements, with the final audit dependent on the removal of the current auditor and appointment of a new auditor, which will be voted on by shareholders. This may result in iCandy's removal from the ASX Official List on 1 April 2026. The company is also considering a potential equity placement to fund the further advancement of the Lemon Sky Studios US IPO and other corporate working capital.

The potential US listing of Lemon Sky Studios, any associated return of value to shareholders, and any capital raising remain subject to ongoing evaluation, regulatory and shareholder approvals, market conditions and final Board approval. Accordingly, there can be no assurance that any of these initiatives will proceed or that they will occur on the timeline currently contemplated.