(AIM: VRE ) has announced that it has conditionally raised €3.0 million at an issue price of 5.47p from HTC Corporation (‘HTC’) through a strategic partnership for the global distribution and license of VR Education’s “ENGAGE” platform through HTC’s enterprise sales channels.
HTC's investment follows the success of the 2020 HTC VIVE Ecosystem Conference which was hosted on the Company's ENGAGE platform in March 2020.
Further to the announcement of 19 March 2020, HTC Corporation and VR Education are entering into a strategic partnership to distribute and licence the group’s ENGAGE platform globally through HTC enterprise sales channels.
The terms of the agreement have already been agreed and will take effect in advance of completion of the Subscription.
HTC will be granted the right to appoint one non-executive director to the Board of VR Education, for such time as its shareholding exceeds 10% of the Enlarged Share Capital.
It is anticipated that the admission of the subscription shares to the London Stock Exchange and Euronext Dublin will become effective at 8.00 a.m. on 12 June 2020.
Use of Proceeds
Proceeds of the subscription will be used to further develop and enhance the company's ENGAGE platform and build its sales and marketing capability, as well as the production of additional showcase experiences to support the uptake of the ENGAGE platform.
The subscription is conditional on shareholder approval and the company will convene a General Meeting at 11 a.m. on 11 June 2020 at the offices of VR Education, Unit 9, Cleaboy Business Park, Waterford, Ireland.
In light of the public health advice in response to the COVID-19 pandemic, all shareholders are strongly advised to submit their votes by Proxy and are kindly asked not to attend the General Meeting in person. No update outside the formal business of the Resolutions will be provided at the meeting.
Shares in VR Education opened down 2.35% to 9.5p following the news.
Alvin W. Graylin, HTC China President, said: "Earlier this year, we saw first-hand the kind of value we can deliver through ENGAGE by successfully hosting our annual VIVE Ecosystem Conference entirely in virtual reality. With the ongoing global pandemic, we recognise that now, more than ever, it is important to invest in and expand accessibility to XR technologies that enable human connection and maintain presence when we are all physically apart. Through this partnership, we believe we can offer an important service to large groups of people to learn, share and collaborate with their peers around the world."
David Whelan, CEO of VR Education, said: "We are delighted to be strengthening our partnership with HTC as demonstrated by its subscription for new shares announced today. The Subscription will provide additional funding for the next stage of our development and allow us to progress the capabilities and commercialisation of our core ENGAGE platform at a time when industries across the globe are adapting to new and innovative ways of working.
In the wake of the COVID-19 pandemic, which is set to catalyse long-term changes in working practices, VRE and HTC's combined offering provides a complete end-to-end service to alleviate the challenges posed by reduced travel due to health and climate change concerns. We look forward to this next stage of our development and continuing to work alongside HTC as a strategic partner and shareholder to provide these solutions for customers."
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