Manchester-based VR firm Immotion Group has unveiled plans to raise £1.3m via a share placing to shore up its balance sheet during the coronavirus pandemic.
The out-of-home VR entertainment firm said it would raise funds through a placing at 2.5p per share – a 28.6% discount to its closing price on Tuesday. The placing is being conducted through an accelerated book-build process that will start immediately.
In an update on its operations, Immotion said it was confident in its core strategy despite the pandemic and that its installed base and contracted pipeline provided “a path to profitability once trading conditions return to pre-[coronavirus] levels”.
Because of a relaxation of lockdown measures in the US, Immotion also hopes to be able to re-commence work on its major installation at the Mandalay Bay hotel in Las Vegas.
Immotion also said it has focused on “tight management of cash” during the pandemic and that its operating costs had fallen to £200,000 in April from a predicted level of £310,000.
The company also said it was “looking to enter new market segments with new formats, and will, following lockdown, be finalising the development of its dinosaur VR experience and immersive pre-show content”.
