Virtual reality startup Immersed to go public via SPAC deal - sources

Maquia Capital Acquisition

09/08/2023 04:21

By Milana Vinn
       NEW YORK, Aug 8 (Reuters) - Immersed Inc, a maker of
software used in augmented and virtual reality (AR/VR)
technology for remote working, has struck a deal to go public
through a merger with a blank-check acquisition firm, according
to people familiar with the matter. 
    Immersed will merge with Maquia Capital Acquisition Corp
 MAQC.O , a special purpose acquisition company (SPAC), in a
deal that values the Austin, Texas-based firm at about $150
million, the sources said. 
    As part of the deal, Immersed is raising bridge financing
through convertible notes from investors including Intel Corp
 INTC.O  Chief Executive Pat Gelsinger, former football player
Tim Tebow, and All Blue Capital.
    The deal value does not include the proceeds of $160 million
that Maquia Capital Acquisition raised in May 2021, the sources
said, adding that Immersed is in talks to raise additional
financing through a private investment in public equity (PIPE).
    Immersed expects to have access to the proceeds raised by
the SPAC, barring redemptions, the sources said. The transaction
will be announced as early as Wednesday, the sources added.
    SPACs, or blank-check firms, are shell companies that raise
money in an initial public offering (IPO) and put it in a trust
for the purpose of merging with a private company and taking it
public. 
    Dealmaking involving such investment vehicles peaked during
2021, before falling out of favor with investors who were left
nursing huge losses from most of these deals.
    Founded in 2017 by software engineer Renji Bijoy, Immersed
develops spatial computing software that enables remote working
for employees. It is developing new software and hardware tools,
including an artificial intelligence-powered assistant for
enterprise customers. 
    After the deal closes, Immersed will be listed on the Nasdaq
under the ticker "AIMR", the sources said. 

 (Reporting by Milana Vinn in New York; editing by Robert
Birsel)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409))