Virtual reality group to raise £2.5m through new share placing

Martin Higginson

Immotion Group, the Salford-based immersive virtual reality (VR) out-of-home entertainment group, is to raise a total of £2.5m through the issue of new shares.

It aims to achieve £2m from 29.6 million new ordinary shares.

This will enable the firm to roll-out its partnership model into high footfall locations.

It believes the higher margins and recurring revenues delivered from this model is the best strategy for the group and its shareholders.

WH Ireland Limited and Alvarium Capital Partners are acting as joint brokers in relation to the placing.

The company has also authorised the brokers to raise up to a further £500,000 through a broker option, to allow existing and other investors to participate in the fundraising.

Currently the group has installed a total of 237 of its headsets in various sites around the world.

It said 34 new headset installations have been agreed across Madame Tussauds in Washington DC; at two Legoland Discovery Centres; and two Al Hokair sites in the Middle East.

A further 118 headsets installations have been agreed, subject to contract, which are expected to be installed through the remainder of 2019.

Based on current headset yields, the directors expect overall monthly EBITDA breakeven at around 410 installed headsets, which is expected in the first quarter of 2020.

Immotion is working on the launch of ‘Underwater Explorer’, ‘Thrill Coasters’ and ‘Raw Data’ themed VR stands and reports strong demand and enquiries from both existing and new high footfall leisure destination partners.

Immotion chief executive, Martin Higginson, said: “Since inception we have invested heavily in building a range of VR experiences, the quality of which has not been seen before at affordable price points in the ‘out-of-home’ VR market.

“This fact, combined with our proprietary reporting software, themed stands and ongoing investment in VR motion platforms, has positioned us well in this nascent market.

“However, it has been our determination to create a new and exciting business model that has, and will, define us.

“Creating a partnership solution where we work together with high footfall leisure locations to provide them with not only a new and interesting attraction, but also a valuable ancillary revenue stream, has transformed our business. Demand from high quality aquaria partners is very strong and we are beginning to see demand from other verticals.”

He added: “Our continued focus in creating not only the right environment as well as VR experience for our partner, is starting to show encouraging signs with revenues in our partner estate growing strongly.

“The performance of our aquaria partners is particularly strong and the directors see this as a highly scalable, potentially global opportunity.

“As we move closer to EBITDA breakeven, this tipping-point business is poised for substantial growth.

“Our offering is unique, our experiences are the best in class, and our list of quality partners just gets better every day.

“With an offering that benefits our partners as much as us, we believe this model will allow us to lead this new and exciting market.”

Close