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Immotion plans fundraising following deal with Las Vegas resort

The deal with the MGM Mandalay Bay will see Immotion install a 36-seat VR theatre and interactive exhibit, its largest to date, at the resort's Shark Reef Aquarium

Immotion Group - Immotion plans fundraising following deal with Las Vegas resort

Immotion Group PLC (LON:IMMO) said Thursday it has raised gross proceeds of £2.85mln from an "oversubscribed" fundraising to accelerate its growth plans, and also revealed it has inked a revenue-sharing deal with the MGM Mandalay Bay resort and casino in Las Vegas.

The firm, which specialises in ‘out of home’ virtual reality (VR) experiences, said around 39.3mln new shares were conditionally placed by brokers WH Ireland and Alvarium Capital Partners at a price of 7.25p each, around an 11% discount on Wednesday’s closing price. The new shares will represent approximately 12.1% of the company's issued share capital following completion of the placing

In afternoon trading, Immotion shares were changing hands at 7.90p each, down 3% on Wednesday's close.

READ: Immotion confirms 93 VR headset installations for first quarter of 2020

Immotion’s fundraising announcement was accompanied by news of the revenue sharing agreement with MGM, which will see the firm install a 36-seat VR theatre and interactive exhibit, its largest to date, at the Mandalay Bay’s Shark Reef Aquarium.

The company will receive 50% of all revenue attributed to its theatre and exhibit, with the agreement to be in effect for a minimum of 18 months.

Including the installation at the Mandalay Bay, Immotion says it currently has 63 VR headsets contracted to be installed in the first quarter and another 66 subject to contract, which will take its total installed base to 431.

These expected installations, combined with its existing installed base, is expected to deliver monthly underlying EBITDA breakeven by the end of the first quarter.

‘Edutainment’ experiences

Immotion is also planning to launch a new range of ‘edutainment’ experiences in the second quarter aimed at zoos, science centres and museums.

“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”, said Immotion chief executive Martin Higginson.

“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", he added.

 -- Adds placing confirmation, updates share price --

Quick facts: Immotion Group

Price: 7.475 GBX

AIM:IMMO
Market: AIM
Market Cap: £24.33 m
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Full interview: Immotion surpasses its break-even headset target as it signs...

Immotion Group PLC's (LON:IMMO) Martin Higginson tells Proactive London's Andrew Scott they've now inked contracts for over 430 of its virtual reality (VR) headsets after signing deals for 68 of the devices over the past week. The bulk of the new installations are due to occur over the first...

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