Ian Walker

Shares of Immotion Group PLC soared 79% on Thursday, when the corporate introduced it could promote its location-based leisure enterprise at an enterprise worth of $25.2m, returning as much as £13.5m ($16.7m). cash to shareholders.

The inventory at 0852 GMT rose 1.10p, or 50%, to three.30p after peaking at 3.94p earlier within the session.

The British immersive leisure firm believes there’s a development alternative for its LBE enterprise, however mentioned the present macroeconomic setting will make it harder and would require extra capital to speed up development. The board mentioned it doubted whether or not debt financing may very well be secured on acceptable phrases and didn’t want to increase fairness capital.

The corporate mentioned it could hold its home-based leisure enterprise, which it believes has nice potential.

“Given the present financial local weather, it is a whole lot for all our shareholders, not solely returning money per share in extra of at present’s inventory worth, but in addition permitting us to maneuver ahead with new power and money for our PLC automobiles. Government Martin Higginson mentioned:

Immotion mentioned it can use the remaining funds raised from the sale for future alternatives for the group. The corporate has not disclosed the way it plans to return the cash, which is equal to about 3p per share, to shareholders.

The sale is topic to shareholder approval on the shareholders’ assembly on February 21. If authorised by the Normal Assembly, the Board of Administrators will change the identify of the corporate to Let’s Discover Group PLC.

Please contact Ian Walker (ian.walker@wsj.com).