Immotion unveils plans to raise £2m
Immotion Group, the UK-based immersive virtual reality (“VR”) out-of-home entertainment group, announces, following the success of its recent VR installations into a range of high quality partners (“Partners”), that it has decided to focus its strategy predominantly on the roll out of its Partnership Model into high footfall locations.
- Currently the Group has a total installed base of 237 headsets;
- 34 new headset installs agreed across Madame Tussauds, Washington DC; two Legoland Discovery Centres; and two Al Hokair sites in the Middle East;
- A further 118 headsets installs agreed subject to contract, expected to be installed through the remainder of 2019;
- Based on current headset yields, the Directors expect overall monthly EBITDA breakeven at c.410 installed headsets (expected Q1 2020);
- Strong revenue per headset performance in the Partner venues being driven by sector focus;
- Launch of ‘Underwater Explorer’, ‘Thrill Coasters’ and ‘Raw Data’ themed VR stands;
- Strong demand and enquiries from both existing and new high footfall leisure destination Partners;
- Roll-out of the Company’s VR Cinematic Platforms with Merlin Entertainments plc (“Merlin”), now encompassing the Legoland Discovery Centre, LEGOLAND®, Sea Life, and Madame Tussauds locations with 70 headsets now installed; and
- ImmotionVR, the Company’s own VR operations, now also includes a partnership-based model focusing on high footfall leisure destinations, such as The O2, Soar Centre in Glasgow, and Star City in Birmingham.
- Proposed Fundraising of up to approximately £2.5 million before expenses at a price of 6.75 pence per share by way of a Placing and Broker Option.
- Placing being conducted through an accelerated book-build process which will open with immediate effect following this Announcement.
- The Placing Shares and Broker Option Shares (“New Ordinary Shares”), assuming full take-up of the Placing and Broker Option, will represent approximately 13 per cent. of the Company’s enlarged issued share capital.
- The final number of Placing Shares will be agreed by the Brokers and the Company at the close of the Bookbuild, and the result will be announced as soon as practicable thereafter.
- The timing for the close of the Bookbuild and allocation of the Placing Shares shall be at the discretion of the Brokers, in consultation with the Company. The Fundraising is not underwritten.
- The Broker Option is expected to close by 5.00 p.m. on 30 July 2019.
- The Appendix to this Announcement (which forms part of this Announcement) contains the detailed terms and conditions of the Fundraising.