Extension of exclusive distribution agreement

RNS Number : 4780A

Immotion Group PLC

12 September 2018

 

12 September 2018

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulations No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Immotion Group PLC

("Immotion Group" or the "Group")

Extension of exclusive distribution agreement with Leke

Immotion Group is pleased to announce the extension of the Group's exclusive distribution agreement with Beijing LEKE VR Technology Co., Ltd ("Leke VR") for the UK and a new exclusive distribution agreement in the USA, both agreements running through to 31 December 2019, subject to achieving commercial targets in each market.

Following these updates, Immotion Group's distribution agreement with Leke VR provides it with the distribution rights to sell Leke VR's motion platform hardware coupled with Immotion's proprietary VR experiences on an exclusive basis throughout the UK and also the USA, and currently on a non-exclusive basis across most other jurisdictions globally.

In addition, Leke VR has agreed to make the VR experiences produced by Immotion Group available across its entire base of installed VR platforms in 30 countries. The Group will monetise its content on a "per play" basis. The current usage on the Leke VR installed base is approximately 1 million "plays" per month and the Directors expect this to grow strongly.  The parties will now begin a full assessment of the relevant operational matters, with a view to such distribution beginning towards the end of 2018.

Martin Higginson, CEO of Immotion Group said: "We are extremely pleased to have extended our exclusive relationship, and to be working much closer with Leke VR. We share the same vision with extremely complementary skills. Leke VR are, in our view, the market leaders in affordable VR motion platforms, whilst we believe Immotion is leading the way in immersive VR experiences. This unique combination, now available globally, will further propel both Immotion and Leke VR in their quest to lead the 'out of home' VR market."

Evan He, CEO of Leke VR said: "We are pleased to extend our exclusive distribution and manufacturing agreement with Immotion for both the UK, and now the USA, and to be working with them on the distribution of their VR experiences. The quality of experiences produced by the Immotion team is way above anything we have seen to date. We are convinced our customers will love them. The combination of the Immotion Group's VR content and our VR motion platforms will allow Leke to deliver an offering which is far superior to other affordable VR experiences available to consumers globally."

Enquiries:

Immotion Group	Martin Higginson	Tel: [phone]
WH Ireland Limited (Nomad and Joint Broker)	Adrian Hadden Jessica Cave	Tel: [phone]
Shard Capital Partners LLP (Joint Broker)	Damon Heath Erik Woolgar	Tel: [phone]
Redleaf Communications (Financial PR)	Elisabeth Cowell Robin Tozer	Tel: [phone] [e-mail]

About Immotion Group

Immotion Group, co-founded by Martin Higginson and David Marks in 2017, generates revenues through the delivery of high quality "state of the art" VR experiences, combined with cutting edge motion platforms to consumers at an affordable price point through a range of routes:

·     Sales - sale of VR Motion Platforms to Leisure and Entertainment operators provide the opportunity for the operator to drive substantial ancillary revenues

·     Concession partners - currently installed at a range of outlets including Merlin Entertainments' LEGOLAND® Discovery Centres in Boston, USA and in Manchester, UK and Genting Resorts World in Birmingham - this channel provides an opportunity for its partners to earn ancillary revenues, as well as providing an exciting additional attraction to their facilities

·     Owned and franchised outlets, trading as ImmotionVR, located in high footfall shopping centres

 

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