Virtual reality group to raise £1m in share placing
Virtual reality group Immotion plans to raise £1.3m through an equity fundraising.
The Salford-based company says it “remains confident in its core strategy” despite the disruption and delays caused by Covid-19.
It believes its “installed base and contracted pipeline provide a path to profitability once trading conditions return to pre-COVID-19 levels”.
Immotion has sought to reduce costs, with cash operating costs reduced by more than one-third, to around £200,000 in April. It has furloughed some staff in the UK and USA and the “vast majority”, including all directors, have taken a pay cut.
The fundraising would support Immotion’s balance sheet and enable it to trade through an extended period of disruption.
The new shares will represent nearly 14% of the company’s share capital. The placing, which is not being underwritten, is being carried out by WH Ireland and Alvarium Capital Partners.
Immotion’s share price has been falling for the past year after an early-summer rally in 2019, when it peaked above 10p. Its shares closed last night at 3.4p while the share placing is priced at 2.5p per share.