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Ian Walker
Shares of Immotion Group PLC soared 79% on Thursday, when the company announced it would sell its location-based entertainment business at an enterprise value of $25.2m, returning up to £13.5m ($16.7m). money to shareholders.
Shares at 0852 GMT rose 1.10p (50%) to 3.30p, peaking at 3.94p early in the session.
The British immersive entertainment company believes there is a growth opportunity for its LBE business, but said the current macroeconomic environment will make it more difficult and will require more capital to accelerate growth. The board said it doubted whether debt financing could be secured on acceptable terms and did not wish to raise equity capital.
The company said it would keep its home-based entertainment business, which it believes has great potential.
“Given the current economic climate, this is a good deal for all our shareholders and will not only return cash per share in excess of today’s stock price, but also allow us to advance the cash of our new energy and PLC vehicles. Executive Martin Higginson said:
Immotion said it will use the remaining funds raised from the sale for future opportunities for the group. The company has not disclosed how it plans to return the money, which is equivalent to about 3p per share, to shareholders.
The sale is subject to shareholder approval at the shareholders’ meeting on February 21. If approved by the General Meeting, the Board of Directors will change the name of the company to Let’s Explore Group PLC.
Please contact Ian Walker (ian.walker@wsj.com).
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