REG - Mindflair PLC - Infinite Reality agrees to acquire Landvault

MindflairAnnouncement

09/07/2024 15:45

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RNS Number : 7374V  Mindflair PLC  09 July 2024

9 July 2024

Mindflair plc

("Mindflair" or the "Company")

 

Infinite Reality agrees to acquire Landvault, a Sure Valley Ventures portfolio
company, for US$450 million

Mindflair plc, the company investing in next-generation technology focused on
AI, notes the announcement made by Infinite Reality ("iR"), that it has agreed
to acquire Landvault for US$450 million in an all-share transaction.
 Landvault is a portfolio company of the Sure Valley Ventures Fund ("SVV1"),
in which Mindflair has an investment.

SVV1 has a 7% shareholding in Landvault, and Mindflair has a 13% direct
interest in SVV1 and a 5.3% indirect investment in SVV1 via its holding in
Sure Ventures plc. The purchase consideration for Landvault would comprise new
shares in iR and it is expected that this company will be seeking a listing on
Nasdaq in Q3 2024 through a combination with its SPAC partner, Newbury Street
Acquisition Corp.

Based on the figures set out above, this disposal has the potential to
generate proceeds for Mindflair of circa US$6 million depending on the value
of iR shares,  a circa 470% uplift on SVV1's  carrying value of Landvault as
at 31 December 2023 and an increase in the net asset value of SVV1 from the
value at 31 December 2023.

Furthermore, iR has also today announced a US$350 million minority investment
from a private multi-family office focused on global technology, media, and
real estate, increasing iR's valuation to $5.1 billion.

Further details will become available once iR publishes details of its
proposed listing on Nasdaq, although there can be no guarantee that a listing
of iR will ultimately take place.

iR is an innovation company powering the next generation of digital media and
ecommerce through AI and immersive technologies. iR's virtual worlds enable
brands and creators to fully control how they distribute content, engage
audiences, and monetize their creations while maintaining ownership of their
data. With deep expertise in Hollywood production and extended reality ("XR"),
iR is redefining the infinite possibilities of connected digital environments
in the modern age. iR's portfolio of brands includes the Drone Racing League
(https://www.drl.io/) , XR production facility Thunder Studios
(https://www.thunderstudios.com/) , creator talent management firm TalentX,
and digital marketing agency Fearless Media (https://fearlessmedia.com/) .

 

The company is backed by a number of investors including RSE Ventures, Liberty
Media, Lux Capital, Lerer Hippeau, MGM, CAA, T-Mobile Ventures, Courtside VC,
Exor, Terracap, IAC, Live Nation, DJ and producer Steve Aoki, rock band
Imagine Dragons, NBA player Rudy Gobert, Interscope Records, and more. For
more information, go to theinfinitereality.com
(https://theinfinitereality.com/) .

SVV1 is a venture capital fund, investing in a range of software companies
with a focus on companies in AI and ML, Immersive Tech, Metaverse and
Cybersecurity sectors. The fund is run by the same SVV team which has been
highly successful in achieving a number of cash realisations from, and upward
revaluations of, companies in the SVV portfolio.

SVV1, which includes a cornerstone EUR 10 million investment from Enterprise
Ireland, was launched in March 2017.  SVV1 is currently in its investment
realisation phase.

Nicholas Lee, Director of Mindflair, commented:

"This is a very exciting and potentially material development for Mindflair
given its significant exposure to SVV1. We very much look forward to further
news regarding iR's proposed listing."

 

The Directors of the Company are responsible for the release of this
announcement. The person who arranged for the release of this information is
Nicholas Lee, a director of the Company.

 

Enquiries:

 

 Mindflair plc                       Tel: +44 (0) 20 3368 8961

 Nicholas Lee, Director

 Nominated Adviser                   Tel: +44 (0) 20 7213 0880

 Cairn Financial Advisers LLP

 Liam Murray / Ludovico Lazzaretti
 Broker                              Tel: +44 (0) 20 7469 0935

 Peterhouse Capital Limited          Tel: +44 (0) 20 7469 0936

 Duncan Vasey/Lucy Williams

 

Notes to Editors

Mindflair plc (AIM: MFAI) is an investment company providing investors with
access to a portfolio of next generation technology businesses focused on AI
with significant growth potential. The Company is building an investment
portfolio of high-tech businesses focused on Artificial Intelligence, across
such areas as Internet of Things, Cyber Security, Machine Learning, Immersive
Technologies and Big Data, which the Board believes demonstrate evidence of
traction and the potential for exponential growth, due to increasing global
demand for development in these sectors. For further information, visit:
http://www.mindflair.tech/ (http://www.mindflair.tech/) .

Sure Valley Ventures (www.surevalleyventures.com
(https://cairnfin.sharepoint.com/Users/nicholaslee/Library/Containers/com.apple.mail/Data/Library/Mail%20Downloads/5A6620E3-FC43-41F2-85BF-ECD08A48DE0F/www.surevalleyventures.com)
) ("SVV") is a venture capital firm that invests in early-stage AI software
companies in the UK and Ireland. Investing in AI since the firm's inception in
2017, SVV has a strong track record of accelerating the growth of private AI
companies through to Series A and beyond.

 

Caution regarding forward looking statements

 

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identiÞed by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reßect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.

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