Post-merger ownership after and accounting for the capital raises is expected to be split 25% to current Metro One stockholders and debtholders, and 75% to current and new Inception XR stockholders.
By Global FinTech Series News Desk
Metro One Telecommunications, Inc announced the signing of a Non-Binding Term Sheet for a proposed reverse merger with leading virtual reality tech company Inception XR Inc.Â
Founded in 2016, Inception XR evolved as an EdTech software house, specialising in immersive media for superior learning outcomes through Virtual Reality, Augmented Reality and 3D web.Â
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As the COVID-19 pandemic introduced significant challenges for healthcare professionals, Inception XR’s immersive learning platform has expanded to serve the unique conditions in hospitals. An edgy approach to healthcare training, Inception XR’s advanced solutions continue to offer medical professionals effective, immersive assessment and training in order to improve clinical and financial outcomes and patients’ wellbeing and safety.
Inception XR is expected to reach approximately $4.8 million in revenue in 2023 with positive EBITDA.
According to the Term Sheet, the combined valuation of Metro One after the reorganisation and new capital raises will be approximately $65 million. As a condition of closing, Metro One will raise $3.6 million, and Inception XR will provide an additional $1.8 million either in the form of working capital or new capital raised, all to be invested in the combined company. Post-merger ownership after and accounting for the capital raises is expected to be split 25% to current Metro One stockholders and debtholders, and 75% to current and new Inception XR stockholders.
The newly proposed board will have eight members, consisting of 5 members from Inception XR and 3 members from Metro One, with the current CEO of Inception XR, Benny Arbel, becoming CEO of Metro One.
Commenting on the proposed merger, Nani Maoz, Chairman and CEO of Metro One: “This combination brings substantial value to Metro One’s existing and new investors as Inception XR operates in an exciting and fast-growing space quickly becoming mainstream. The publicly listed platform will better position Inception XR to take advantage of small acquisition opportunities, and as a U.S. company, will be closer to the vast U.S. market of corporate training applying its technology. We are especially pleased to have the opportunity to collaborate with the fine management team and the high-calibre stockholders of Inception XR – German Conglomerate RTL Group and Gigi Levy-Weiss who will join our already impressive list of investors and stockholders. This deal, if consummated, will bring a bright future to Metro One as a combined company with current and new shareholders maintaining a significant portion of ownership while assisting Inception XR’s expansion efforts”.
Benny Arbel, CEO of Inception XR added that “This merger into a public company represents a transformative step for Inception XR. It will not only enable us to accelerate our growth but also to expand our reach and impact in the virtual reality sector. By integrating with Metro One, we’re poised to leverage their market presence and enhance our innovative solutions. Our goal is to revolutionise how people learn and train in various industries, making immersive and interactive experiences more accessible and effective than ever before. This partnership marks a significant milestone in our journey towards becoming a global leader in immersive educational technology.”
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