VR group to accelerate growth through £2.85m share placing

Salford-based virtual reality group Immotion is to raise £2.85m through a share placing.

It said this follows a range of successful developments, including significant new partner contracts, and ongoing demand for larger installations.

Funds raised will be used to strengthen the group’s balance sheet and accelerate its growth plans.

Immotion will place around 39.3 million new ordinary shares at a price of 7.25 pence per share.

WH Ireland Limited and Alvarium Capital Partners are acting as joint brokers in relation to the fundraising, which is subject to shareholder approval at a general meeting expected to be held on February 10 at the London office of WH Ireland.

The placing shares, assuming full take-up, will represent approximately 12.1% of the company’s enlarged issued share capital. The placing is not underwritten.

Immotion ended 2019 with 302 installed headsets, of which 117 were ImmotionVR and 185 were partners. It said 2019 trading was in line with market expectations.

The company also announced on January 15, that it has signed contracts with the London Eye, a further four aquariums and with its first European zoo partner for a total of 27 headsets.

Additionally, the company has agreed terms, subject to contract, with a further nine aquariums and five entertainment sites for a further 66 headsets.

The company said it is in active discussions on a number of opportunities for larger installations.

In the second quarter of 2020, the company expects to launch a range of exciting new “edutainment” experiences aimed at family-focused, high traffic destinations such as zoos, science centres, museums and larger entertainment locations.

Chief executive Martin Higginson said: “Immotion’s partnership strategy continues to gain traction and build towards a leadership position in the ‘out of home’ VR and immersive experience market.

“Our partner model has been well received and is delivering great results for both ourselves and our partners.

“We have sight of an installed base of 431 headsets by the end of Q1 2020. This positions us well to achieve positive monthly EBITDA by, or around, the end of Q1, based on our forecasted costs base.

“We continue to see strong demand for our core offering, which now includes a fully-integrated immersive exhibition solution – a combination of immersive, and interactive experiences alongside a larger cinematic VR Theatre.

“This new offering, along with our existing smaller footprint installations, gives us the ability to serve both our existing partner base, as well as the growing trend of partners wanting larger installations.”

He added: “There is great excitement for the launch of our largest installation in one of the world’s most popular tourist destinations, Las Vegas.

“Our partnership with MGM Resorts International and its Shark Reef Aquarium at Mandalay Bay Resort and Casino will set the trend for larger and more integrated immersive experiences to come.

“Demand for easy-to-operate larger VR cinematic theatres is growing. The recent evolution of the Sea Life London Aquarium from a four-seat offering, to an eight-seater mini VR Theatre, alongside the London Eye six-seater VR Theatre is testament to demand for this product.

“We see further significant growth in both the aquarium sector for our Ocean Explorer VR experiences, as well as iconic city locations for our tailored Tower Coaster VR offering, especially with the new larger multi-user VR cinematic solution.

“2020 will see us launch new ‘edutainment’ experiences aimed at zoos, science centres and museums as well as high traffic destinations.”

He said: “It has always been our intention, based on solid financial data, to scale the business rapidly and to that end we have decided to undertake the placing so that we can maintain momentum. We are looking forward to the rest of 2020 with considerable enthusiasm.”