Virtual reality firm looks to raise £3m to fund growth
A firm which specialises in virtual reality entertainment is looking to raise £3m on the Stock Market.
Immotion, which is based at Salford Quays, is carrying out a fundraising through the issue of 50 million shares.
The proceeds of the fundraising will be used to accelerate the company’s growth plans.
WH Ireland Limited, Shard Capital Partners LLP and Leander Capital Partners Limited are acting as joint brokers.
The new shares will represent approximately 20% of the company’s enlarged issued share capital.
The fund raising is taking place due to a series of developments over the last 12 months.
Following a successful trial, the company has agreed with a number of subsidiaries of Merlin Entertainments to roll out cinematic platforms at Lego Discovery Centres and SeaLife venues.
Over 200 additional headsets are expected to be installed through 2019. The majority of these are likely to be concessions, however some may be machine sales
A 15-month licence deal has been agreed for 12 virtual reality experiences and a minimum annual revenue of £588,000 will be delivered.
A further VR Experience licence contract has been signed for Chinese market with a minimum revenue guarantees of £224,000.
There is also a distribution agreement with Crown Leisure, the UK’s largest distributor of entertainment machines
VR revenue in 2018 was in excess of £1m with more than double the anticipated ImmotionVR headsets in place by year-end 2018.
As at 31 December 2018, the Group had 106 ImmotionVR headsets at 10 locations in the UK and 46 Concession headsets in operation at seven locations.
Martin Higginson, chief executive of Immotion Group, said: “Our mantra has always been; ‘Test, Roll-Out’ and the extension of the Merlin relationship to cover the majority of Lego Discovery Centres, along with trials in three Sea Life Centres, is a significant milestone for the Company.
“Endorsement from Merlin, one of the largest entertainment operators in the world, underpins our belief and confidence in our business model.
“The commercial success of our recent trials, which are being converted into long-term agreements, has shown our ability to deliver revenue for our partners.
“This, together with the positive feedback from the paying public and the discussions we are having with shopping malls and leisure operators around the world, demonstrates that there is a growing demand for our superior out of home immersive experiences.
“We believe we are well placed to take advantage of the opportunities ahead of us, and remain extremely confident that Immotion Group is set to become the leading out of home immersive VR operator in the world.”
