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REG - Engage XR Holdings - Interim Results

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RNS Number : 1700Z  Engage XR Holdings PLC  13 September 2022

13 September 2022

ENGAGE XR Holdings Plc

("ENGAGE XR", the "Company", or the "Group")

 

Interim Results

ENGAGE XR Holdings Plc, a virtual reality ('VR') communications technology
company, is pleased to announce its unaudited interim results for the six
months ended 30 June 2022.

Financial Highlights:

·    Total revenue for the Group up c.41% to €1.76m (H1 2021: €1.25m)

·    ENGAGE revenue up 62% to €1.46m (H1 2021: €0.90m)

·    ENGAGE revenue comprised 83% of H1 2022 total revenue, an increase of
11% on the prior year (H1 2021: 72%)

·    Unaudited gross margin 81% in H1 2022 (H1 2021: 80%)

·    Net cash of €4.9m as at 30 June 2022

Operational Highlights:

Engage

·    New ENGAGE clients include Kuehne + Nagel International AG, the
global transport and logistics company, Kia, and Natixis

·    The number of commercial customers has increased to over 180 since
ENGAGE's launch in May 2019 with over 50 customers added in 2022

·    US Partner VictoryXR has launched 10 'Metaversities' funded by Meta
and built on the ENGAGE platform

·    ENGAGE now has 24/5 customer support with teams in the US, Australia,
and Europe available to help customers.

·    A new improved version of ENGAGE (v2.3) was launched in July 2022
(Details here:  https://youtu.be/KQk5FG1Z8xc

 

ENGAGE Link

·    Development of our new platform, ENGAGE Link, is progressing to plan,
and it is expected to go live before the end of 2022

·    HTC and The Virtual Human Interaction Lab at Stanford University have
already been confirmed as launch partners for ENGAGE Link.

·   Today, ENGAGE XR can confirm that a multi-national professional
services firm, a global technology company and a leading publisher and
education company have also agreed to be launch partners

·    The Group continues to expand its US presence ahead of the launch.
ENGAGE XR's sales team is now strong across USA, Europe, and Asia, comprising
10 employees

·    The latest demonstration of ENGAGE Link is here:
https://youtu.be/ITtz7ErWhMs (https://youtu.be/ITtz7ErWhMs)

 

 

 

 

David Whelan, CEO of ENGAGE XR, said: "As we are gear up for the release of
ENGAGE Link, our enterprise-focused metaverse, there has been increased
activity for our current ENGAGE offerings this year.  ENGAGE revenue is up
almost two-thirds despite the global economic downturn. Companies like Meta
have increased collaboration with us, and we have had major new clients such
as Kia and Natixis come on board. The successful launch of 10 Meta-funded
"Metaversities" or "Virtual Universities" on the ENGAGE platform is the start
of what we expect to be a long-standing successful relationship as Meta rolls
out its new enterprise-focused VR devices.

 

"We are laser-focused on providing enterprise services within the wider
Metaverse. Where other platforms have focused on user growth at all costs,
only to gather a much younger audience, we have focused on developing tools
and services to work with enterprise customers and universities and how they
engage with employees, customers and students in the Metaverse. We will be
launching "ENGAGE Link" later this year, and we are working with current
clients and a range of new clients on the delivery of this new business world.
We have already secured five incredible launch partners, including HTC and The
Virtual Human Interaction Lab at Stanford University.

 

"Due to growing demand, we have increased our sales, marketing, and support
teams to help manage our current growth. We expect a strong end to the second
half of this year with our current pipeline and new services coming on stream
via "ENGAGE Link".

 

"Overall, we are growing strongly, and revenue is now almost completely
comprised exclusively from the ENGAGE platform. Quarterly revenues are
regularly breaking previous records. With strong partnerships being formed
both in the US and Asia, we see this trend continuing and even accelerating in
the future. We, therefore, look forward with optimism and remain confident in
meeting expectations for the year."

 

"It's been said that "The best way to predict the future is to shape it". At
ENGAGE, we are certainly taking that to heart. The Metaverse is not just for
games and entertainment as we lead the way in terms of enterprise and
education applications. This space is about to get interesting as we get set
to turn on the lights at ENGAGE Link."

 

Investor Communications

CEO David Whelan and CFO Séamus Larrissey will provide a live presentation
relating to the Group's interim results via the Investor Meet Company platform
on 13 September 2022 at 10:00am (UK).

 

The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard up until
9:00am the day before the meeting or at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free and add to meet ENGAGE
XR Holdings Plc via:
https://www.investormeetcompany.com/engage-xr-holdings-plc/register-investor
(https://www.investormeetcompany.com/engage-xr-holdings-plc/register-investor)

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.

- Ends -

 

For further information, please contact:

 

 ENGAGE XR Holdings Plc                                            Tel: +353 87 665 6708

 David Whelan, CEO                                                 info@engagexr.co

 Séamus Larrissey, CFO

 Sandra Whelan, COO

 finnCap Ltd (Nominated Adviser & Joint Broker)                    Tel: +44 (0) 20 7220 0500

 Marc Milmo / Seamus Fricker / James Balicki (Corporate finance)

 Sunila de Silva (ECM)

 Shard Capital Partners LLP (Joint Broker)                         Tel: +44 (0) 20 7186 9952

 Damon Heath / Erik Woolgar

 Davy (Joint Broker & Euronext Growth Listing Sponsor)             Tel: +353 1 679 6363

 Barry Murphy / Lauren O'Sullivan / Oisin Morgan

 SEC Newgate (Financial Communications)                            Tel: +44 (0)7540 106 366

 Robin Tozer / Isabelle Smurfit                                    engage@secnewgate.co.uk

 

 

About ENGAGE XR

 

ENGAGE XR Holdings plc (AIM: EXR; Euronext Growth: EXR) is a virtual reality
('VR') technology company focused on becoming a leading global provider of
virtual communications solutions through its proprietary software platform,
ENGAGE. ENGAGE provides users with a platform for creating, sharing, and
delivering VR content for education, training, and online events through its
three solutions: Virtual Campus, Virtual Office, and Virtual Events.

 

ENGAGE is currently developing a new fully featured corporate metaverse,
called ENGAGE Link with the launch expected in the second half of 2022.

 

EXR is listed on AIM in London and on the Euronext Growth, a market operated
by Euronext Dublin.

 

For further information, please visit: www.engagexrholdings.com (LinkedIn:
@Engage XR Holdings plc Twitter: @engage_xr)

Chief Executive's Review

 

As we prepare to launch ENGAGE Link in the next few months, I am delighted to
report ENGAGE has continued its impressive growth. We have had more new
customers embracing the technology and a continued increase in existing
customers using the platform. For example, South Korean company D'Carrick Co
Ltd signed a new contract worth €300,000 over a three-year period in May
2022. Kuehne + Nagel International AG, the global transport and logistics
company and Adtalem Global Education, the American education company, also
signed new contracts.

ENGAGE XR remains focused on becoming a leading global provider of virtual
communications solutions through its ENGAGE solutions. ENGAGE provides users
with a platform for creating, sharing, and delivering VR content for
education, training, and online events through its three solutions: Virtual
Campus, Virtual Office, and Virtual Events.   Our new fully featured
corporate metaverse called ENGAGE Link, will launch in the coming months tying
all these services into one unique corporate offering enabling companies to
create new business opportunities just as the release of the world wide web
did many years ago.

 

The pandemic undoubtedly accelerated the use of VR as a communication tool,
with events, meetings and training sessions increasingly taking place in our
virtual worlds. This use is set to continue as the technology becomes more
accessible, with the likes of Meta, HTC and others bringing new headsets to
the market. Importantly, the Metaverse supports the need for businesses and
consumers to live more sustainably by reducing the need for daily travel.

 

ENGAGE

 

ENGAGE revenue has increased 62% to €1.46 m (2021: €0.9m).  ENGAGE
revenue comprises 83% of total Group revenue, up from 72% during the same
period in 2021. While VRE sells Showcase Experiences on various VR platforms,
which perform well, the Group's ENGAGE platform revenue now dominates.
Showcase Experience revenue totalled €0.3m (2021: €0.3m).

 

Over the last six months, new ENGAGE clients include Kuehne + Nagel
International AG, Kia, and Natixis.

 

Our US Partner VictoryXR has launched 10 'Metaversities' funded by Meta and
built on the ENGAGE platform. Each school will roll out a digital twin,
replica campus for students to attend, whether they are on campus or learning
remotely. The partnership was funded, in part, by Meta Immersive Learning, and
Meta will provide Quest 2 headsets on each campus to each student during the
project as well as funding for the digital twin buildouts. Each campus is
built by VictoryXR on the ENGAGE platform. We expect this partnership to grow
significantly next year as this initial pilot project is now successfully
launched, with hundreds of students learning daily inside the platform.

 

The Group continues to invest in the development of ENGAGE to improve the user
experience. Reflecting its growth and global appeal, ENGAGE now has 24/5
customer support with teams in the US, Australia, and Europe available to help
customers. A new, improved version of ENGAGE (v2.3) was launched in July 2022
(Details here: https://www.youtube.com/watch?v=KQk5FG1Z8xc
(https://www.youtube.com/watch?v=KQk5FG1Z8xc) )

 

 

ENGAGE Link

In June 2021, we announced the planned development of a new fully featured
corporate Metaverse. ENGAGE Link will launch in the coming months and will be
the first time our clients will have publicly accessible, always-on,
persistent locations to advertise their business and services directly to the
general public and to potential clients. Clients can build their own unique
Metaverse for private company use, or make it available to the wider world on
ENGAGE Link, or via their own website, using our deep links system.

 

With ENGAGE Link, we are building a completely distributive economic
environment for forward-thinking enterprises and individuals to build the
future of work, commerce and communications. Where other platforms have
gathered a younger audience, we have focused on developing tools and services
to build businesses in the Metaverse.

We are working with current clients and a range of new clients on the delivery
of this new business world. We have secured five incredible launch partners,
including HTC and The Virtual Human Interaction Lab at Stanford University. In
addition, a multi-national professional services firm, a global technology
company and a leading publisher and education company have also agreed to be
launch partners.  More details of which will be provided as we get closer to
the launch.

Just as the emergence of the internet changed the world in the late 90s, the
professional Metaverse will change business practices globally with how we
communicate with our employees, our customers and each other.

 

Medium Term Outlook

 

Based on the strong traction demonstrated by the increased use of the ENGAGE
platform and the expanding product range, Engage XR is making good progress
towards its medium-term financial objectives for 2023 - 2025. These were
announced in January 2021, and are as follows:

·    Target of reaching €10 million annual ENGAGE revenue milestone, 500
active Enterprise customers and 100,000 monthly users during 2023 - 2025:

o  Target only reflects the current ENGAGE offering and doesn't reflect huge
opportunity from ENGAGE Link

·    Annual ENGAGE revenue CAGR in excess of 100% which is on track to be
achieved in FY22

·    10% average month-on-month increase in users to reach 100,000 monthly
users, reflecting a target 500 active Enterprise customers; We have seen
positive growth in users as we build out to attain this metric

·    Customer retention rate of 80%+; Customer retention in FY22 to date
has been 82% for non-trial customers

·    Growth in average annual contract value to €20,000+, reflecting the
nature of emerging Enterprise client base and optimal contract value; Average
contract value in FY22 has grown to €18,000 so progress is on track to
achieve this target

·    Target Group gross margin in excess of 80%; Group gross margin was
81% in the period, so the Group has exceeded this target

 

Outlook

 

We expect a strong end to the second half of this year with our current
pipeline and new services coming on stream via "ENGAGE Link". Due to strong
and growing demand, we have increased our sales team, marketing department and
support teams to help manage our current growth.

 

Overall, we are growing strongly and revenue is now almost completely
comprised exclusively from the ENGAGE platform. Quarterly revenues are
regularly breaking previous records. With strong partnerships being formed
both in the US and Asia, we see this trend continuing and even accelerating in
the future. As a result, we look forward with continued optimism and are
confident in delivering our forecasts for the current financial year.

 

It's been said that "The best way to predict the future is to shape it". At
ENGAGE, we are certainly taking that to heart. The Metaverse is not just for
games and entertainment as we lead the way in terms of enterprise and
education applications. This space is about to get interesting as we get set
to turn on the lights at ENGAGE Link.

 

 

David Whelan

Chief Executive Officer

13 September 2022

 

 

Financial Review

 

Revenue for the half year is up 41% on the prior half year to €1,757k (H1
2021: €1,248k), driven by a continued acceleration in revenue from the
ENGAGE platform.

 

ENGAGE revenue as a percentage of total revenue grew significantly in the
period and comprised 82% of total revenue in the period (H1 2021: 72%).

 

EBITDA loss was €2.5m (H1 2021: loss of €1.0m).  The primary cost driver
for the EBITDA loss is salary and associated costs, currently approximately
€0.6m per month.

 

Loss before tax was €2.8m, in line with management expectations, compared to
a loss in the prior year of €1.3m.

 

The combination of operating cashflows and capital expenditure in H1 2022 were
€2.9m compared to €1.3m in H1 2021. The current cash burn rate, net of
revenue received, post period end is approximately €0.45m per month but is
expected to decline over the next 12 months as monthly revenues continue to
grow.

 

At 30 June 2022, the Group had a strong cash position with net cash of
€4.9m.

 

 

Séamus Larrissey

Chief Financial Officer

13 September 2022

 

 

 

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2022

 

                                                      Unaudited      Unaudited

                                                      Six months     Six months

                                                      ended          ended

                                               Note   30 June 2022   30 June 2021

                                                      €              €
 Continuing Operations

 Revenue                                              1,757,438      1,248,441
 Cost of Sales                                        (337,244)      (255,869)

 Gross Profit                                         1,420,194      992,572

 Administrative Expenses                              (4,200,985)    (2,287,350)

 Operating Loss                                       (2,780,791)    (1,294,778)

 Finance Costs                                        (17,524)       (3,259)

 Loss before Income Tax                               (2,798,315)    (1,298,037)

 Income Tax Credit                                    -              -

 Loss for the Year from continuing operations         (2,798,315)    (1,298,037)

 

 Loss per share
 Basic from continuing operations  4   (0.010)  (0.004)

 

 

Consolidated Statement of Financial Position

As at 30 June 2022

 

                                         Unaudited      Unaudited      Audited

                                         as at          as at          as at

                                         30 June 2022   30 June 2021   31 Dec 2021

                                  Note   €              €              €
 Non-Current Assets
 Property, Plant & Equipment             105,228        85,043         102,075
 Intangible Assets                2      206,841        659,437        426,454
                                         312,069        744,480        528,529

 Current Assets
 Trade and other receivables             1,087,352      610,704        645,890
 Cash and short-term deposit             4,900,780      9,192,065      7,790,060
                                         5,988,132      9,802,769      8,435,950

 Total Assets                            6,300,201      10,547,249     8,964,479

 Equity and Liabilities

 Equity Attributable to Shareholders
 Issued share capital             5      290,451        290,101        290,451
 Share premium                    5      33,503,300     33,494,550     33,503,300
 Other reserves                          (11,764,028)   (11,861,438)   (11,775,474)
 Retained earnings                       (16,354,082)   (11,727,852)   (13,555,767)

 Total Equity                            5,675,641      10,195,361     8,462,510

 Non-Current Liabilities
 Operating lease liabilities             3,582          12,182         7,883

 Current Liabilities
 Trade and other payables                612,378        312,122        481,576
 Operating lease liabilities             8,600          27,584         12,510
                                         620,978        339,706        494,086

 Total Liabilities                       624,560        351,888        501,969

 Total Equity and Liabilities            6,300,201      10,547,249     8,964,479

Consolidated Statement of Changes in Equity

At 30 June 2022

 Attributable to Equity Shareholders

                            Share     Share       Other         Retained

                            Capital   Premium     Reserves      Earnings      Total

                            €         €           €             €             €

 Balance at 1 January 2021  241,751   24,547,516  (11,337,058)  (10,429,815)  3,022,394
 Loss for the period        -         -           -             (1,298,037)   (1,298,037)
 Issue of ordinary shares   48,350    8,947,034   -             -             8,995,384
 Issue costs                -         -           (538,060)     -             (538,060)
 Share option expense       -         -           13,680        -             13,680
 Balance at 30 June 2021    290,101   33,494,550  (11,861,438)  (11,727,852)  10,195,361

 

 

 

 Attributable to Equity Shareholders

                            Share     Share       Other         Retained

                            Capital   Premium     Reserves      Earnings      Total

                            €         €           €             €             €

 Balance at 1 January 2022  290,451   33,503,300  (11,775,474)  (13,555,767)  8,462,510
 Loss for the period         -         -           -            (2,798,315)   (2,798,315)
 Share option expense        -         -          11,446         -            11,446
 Balance at 30 June 2022    290,451   33,503,300  (11,764,028)  (16,354,082)  5,675,641

Consolidated Statement of Cash Flows

For six month period ended 30 June 2022

 

 

                                                                     Unaudited    Unaudited

                                                                     Six months   Six months

                                                                     ended        ended

                                                                     30 June      30 June

                                                                     2022         2021

                                                              Note   €            €
 Cash Flows from Operating Activities
 Loss before income tax                                              (2,798,315)  (1,298,037)
 Adjustments to reconcile loss before tax to net cash flows:
 Depreciation                                                        34,730       34,225
 Amortisation                                                        219,613      304,688
 Finance Costs                                                       17,524       3,259
 Share Option Expense                                                11,446       13,680
 Movement in Trade & Other Receivables                               (441,462)    (252,427)
 Movement in Trade & Other Payables                                  130,802      (45,299)
                                                                     (2,825,662)  (1,239,911)
 Bank interest & other charges paid                                  (17,524)     (3,259)

 Net cash used in operating activities                               (2,843,186)  (1,243,170)

 Cash Flows from Investing Activities
 Purchases of property, plant & equipment                            (37,883)     (35,432)

 Net cash used in investing activities                               (37,883)     (35,432)

 Cash Flows from Financing Activities
 Proceeds from issuance of ordinary shares                    5      -            8,457,324
 Payment of operating lease liabilities                              (8,211)      (19,374)

 Net cash (used)/generated from financing activities                 (8,211)      8,437,950

 Net (decrease)/increase in cash and cash equivalents                (2,889,280)  7,159,348

 Cash and cash equivalents at beginning of period                    7,790,060    2,032,717

 Cash and cash equivalents at the end of period                      4,900,780    9,192,065

 

 

 

 

Notes to the Interim Report

 

1. Basis of Preparation

 

The consolidated interim financial statements have been prepared in accordance
with the recognition and measurement principles of International Financial
Reporting Standards as endorsed by the European Union ("IFRS") and expected to
be effective at the year-end of 31 December 2022.

 

The accounting policies are unchanged from the financial statements for the
year ended 31 December 2021. The interim financial statements are unaudited
and do not constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006.  Statutory accounts for the year ended 31 December
2021, prepared in accordance with IFRS, have been filed with the Companies
Registration Office.  The Auditors' Report on these accounts was unqualified.

 

The consolidated interim financial statements are for the 6 months to 30 June
2022.

 

The interim consolidated financial information does not include all the
information and disclosures required in the annual financial statements and
should be read in conjunction with the Group's annual financial statements for
the year ended 31 December 2021, which were prepared in accordance with IFRS's
as adopted by the European Union.

 

2. Summary of Significant Accounting Policies

 

New standards, interpretations and amendments adopted by the Company

 

No new standards or amendments have been adopted for the first time in these
financial statements:

 

 

 

Intangible Assets

 

Research costs are expensed as they are incurred.  Development costs that are
directly attributable to the design and testing of identifiable and unique
commercial software controlled by the Company are recognised as intangible
assets when the following criteria are met:

 

-           it is technically feasible to complete the software
product so that it will be available for use and sale;

-           management intends to complete the software product and
use or sell it;

-           there is an ability to use or sell the software product;

-           it can be demonstrated how the software product will
generate future economic benefits;

-           adequate technical, financial and other resources to
complete the development and use or

-           sell the software product are available; and

-           the expenditure attributable to the software product
during its development can be reliably

-           measured.

 

Directly attributable costs that are capitalised as part of the software
product include the software development employee costs and subcontracted
development costs.

 

Other development expenditure that does not meet these criteria is recognised
as an expense as incurred.

 

Development costs previously recognised as an expense are not recognised as an
asset in a subsequent period.

 

Computer software development costs recognised as assets are amortised over
their estimated useful lives, which do not exceed 3 years and commences after
the development is complete and the asset is available for use.  Intangible
assets are amortised over their estimated useful lives based on the pattern of
consumption of the underlying economic benefits.  Amortisation is included in
'Administrative Expenses'.

 

2. Intangible Assets

                       Software

                       in development

                       Costs            Total

                       €                €
 Cost or Valuation
 At 1 January 2022     2,136,231        2,136,231
 Additions              -                -

 At 30 June 2022       -                -

 Amortisation
 At 1 January 2022      1,709,777        1,709,777
 Charge                 219,613          219,613

 At 30 June 2022        1,929,390        1,929,390

 At 30 June 2022       206,841          206,841

 At 31 December 2021   426,454          426,454

 

                       Software

                       in development   Total

                       Costs            €

                       €
 Cost or Valuation
 At 1 January 2021     2,136,231        2,136,231
 Additions             -                -

 At 30 June 2021       2,136,231        2,136,231

 Amortisation
 At 1 January 2021     1,172,105        1,172,105
 Charge                304,689          304,689

 At 30 June 2021       1,476,794        1,476,794

 At 30 June 2021       659,437          659,437

 At 31 December 2020   964,126          964,126

 

 

 

The software being developed relates to the creation of three virtual reality
experiences and an online virtual learning and corporate training platform.

 

ENGAGE is an online virtual learning and corporate training platform currently
in development by the Company. A desktop version was released in December 2018
and the mobile version was released in December 2019. Amortisation commenced
when the mobile version launched.

 

Amortisation expense of € 219,613 (H1 2021: €304,689) has been charged in
'Administrative Expenses'.  An impairment review was carried out at the
balance sheet date.  No impairment arose.

 

3. Share Based Payments

 

Share-based payment schemes with employees

There were 285,714 (2021: Nil) employee options granted during 2022 at an
exercise price of €0.175 per share and these vest subject to continued
service by the employee over a period of 3 years. Options expire at the end of
a period of 7 years from the Grant Date or on the date on which the option
holder ceases to be an employee.

Share-based payment expense with Director

There were no share options granted during 2022 (2021: Nil) to Directors.

 

 

The movement in employee share options and weighted average exercise prices
are as follows for the reporting periods presented:

 

                                              2018 Scheme
                                              Half-Year            Half-Year 2021

                                              2022

 At 1 January                                  4,298,042            4,298,042
 Granted during period                        285,714              -
 Forfeited during period                      -                     (11,111)
 At 30 June                                     4,404,127           4,286,931

 Options outstanding at 30 June
 Number of shares                             4,404,127            4,286,931
 Weighted average remaining contractual life  1.71                 1.54
 Weighted average exercise price per share    €0.047               €0.030
 Range of exercise price                      €0.0001 - €0.20      €0.0001 - €0.135

 Exercisable at 30 June
 Number of shares                             2,718,413            2,953,842
 Weighted average exercise price per share    €0.031               €0.030

 

The expense recognised in respect of employee share based payment expense and
credited to the share based payment reserve in equity was €11,446 (2021:
€13,680)

 

4. Loss per share

                                                     Unaudited     Unaudited

                                                     Six months    Six months

                                                     ended         ended

                                                     30 June       30 June

                                                     2022          2021

 Loss attributable to equity holders of the Group:   €             €

 Continuing Operations                               (2,798,315)   (1,298,037)

 Weighted average number of shares for Basic EPS     290,101,146   290,101,146

 Basic loss per share from continuing operations     (0.010)       (0.004)

5. Share Capital

                                        Number of shares  Ordinary  Share       Total

                                                          shares    premium
                                                          €         €           €
 At 1 January 2022 and at 30 June 2022  290,101,146       290,101   33,494,550  33,784,651

 

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements.

The Company cautions security holders and prospective security holders not to
place undue reliance on these forward-looking statements, which reflect the
view of the Company only as of the date of this announcement. The
forward-looking statements made in this announcement relate only to events as
of the date on which the statements are made. The Company will not undertake
any obligation to release publicly any revisions or updates to these
forward-looking statements to reflect events, circumstances, or unanticipated
events occurring after the date of this announcement except as required by law
or by any appropriate regulatory authority.

 

- ENDS -

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