The share price of Salford-based immersive reality group, Immotion, has risen this morning following a series of major announcements.
It has firstly agreed to the sale of its Location Based Entertainment Business (LBE) for $25m (£20m). If approved, this would lead to a £13.5m windfall for shareholders.
The company has also completed the disposal of its Uvisan division, for £100k.
It means the group will concentrate on its Home-Based Entertainment (HBE) business and is proposing changing its name to Let’s Explore Group PLC.
In a statement to the Stock Exchange this morning, it said that it would seek to create a “high growth trading group” through strategic acquisitions. These would be funded by £6.5m retained from the LBE sale.
“As I’m sure shareholders will understand this transaction has taken time to conclude, and as a consequence we have been unable to update the market for a number of weeks. Given the current economic climate we believe this is a good deal for all shareholders, allowing us to not only return cash per share in excess of today’s share price, but to go forward with renewed energy, and cash in the plc vehicle. Furthermore, with access to capital, this proposed sale will allow the business we started, along with team we created, to grow faster. The journey has had a few bumps along the way, not least the Covid Pandemic,” stated Martin Higginson, CEO of Immotion.
“The hardest part of starting any business is the journey through to profitability. We have, despite the challenges, achieved this, and now hand over a profitable business for the next stage in its journey. With access to capital, this proposed sale, will allow the business we started, along with team we created, to grow faster. It has been my pleasure to have worked with such a talented team, and I wish them and the new owners well.”
“I am genuinely excited about the next stage in the Company’s journey, we have, I believe, got the opportunity to build a highly dynamic trading business, and with a few opportunities already on the horizon, I am looking forward to what the future holds.”
This morning, Immotion also announced the signing of a 3 year deal with Merlin Entertainment Group. This runs through to December 2025 and covers 26 sites.
