Metaverse company Infinite Reality to go public with $1.85B SPAC

infinite realityA company bringing a company into the metaverse has announced plans to go public through a special purpose acquisition company (SPAC). The company plans to raise at least $128 million at a valuation of $1.85 billion.

Under the agreement, Infinite Reality will merge with publicly traded Newbury Street Acquisition Corporation (NASDAQ: NBST) as an investment vehicle. Infinite Reality says it’s working with some of the world’s biggest brands, including Warner Bros. Discovery Sports, to foster immersive virtual experiences and new monetization opportunities at Web3-enabled showrooms and events.

In July, Infinite Reality acquired esports company ReKTGlobal for $470 million in stock. The deal values ​​the combined entity at $2.5 billion.

CEO John Acunto said in an interview with GamesBeat that the company has yet to disclose information about investors in the PIPE deal.

Acunto said the company has not disclosed any financial figures, such as whether it is profitable. He said the company is in a transition period and is “creating an immersive experience for our customers at a blazing pace.” He said the $128 million figure does not include any funding from PIPE.

As for the change in valuations, Acunto said this shows how “world macroeconomics” are changing the dynamics of valuations.

“We actually feel pretty good about the valuation and are able to meet the stringent [analysis],’” he said. “We look at other businesses with similar assets that are down 90% in the market. This is a huge win for us. “

As for whether the game will lead the way to the Metaverse, Acunto said he doesn’t really agree with that, despite his purchase of the RektGlobal business. Acunto said the deal with RektGlobal, which owns the esports business, is focused on connecting brands to immersive experiences.

“Certainly, gamers have been in the Metaverse for a while. They’ve been able to live in these communities and socialize and engage in a variety of ways,” Acunto said. “I think what people don’t realize is just the level of quality of these video game-level self-proclaimed metaverses. For us, that’s why we try to help brands create amazing immersive experiences. So, they It’s possible to engage with these audiences, like gamers, through these amazing experiences. We certainly see gamers as part of that, but definitely not necessarily the first early adopters.”

The transaction is expected to strengthen the company’s offering of immersive audience experiences and commercial monetization opportunities. The deal will add a sizeable benefit to Infinite Reality’s war chest.

“Our team was blown away by the opportunity that Infinite Reality had to really revolutionize the way people
Experience the internet of the future,” Newbury CEO Tom Bushey said in a statement. “Infinite Reality has the expertise, innovation and scale to be a trailblazer in helping brands connect directly with audiences and customize their Metaverse experiences. Online business and entertainment will never be the same again. The creative talent and experience of this team has made Infinite Reality stand out, and all of us at Newbury are excited to be their long-term partners. “

After payment of transaction costs, net proceeds will be used to continue to build
infrastructure for Infinite Reality, expand its team, begin aggressive marketing of products and services, fund future acquisitions, and for other general corporate purposes.

Part of its value, the company says, is that it already has the trust of some of the world’s biggest brands. Infinite Reality says it is forging a new path for companies, sports teams, celebrities, influencers and other creators to foster immersive personal connections and business opportunities at Web3-enabled events and showrooms. Plus, it says it’s easy to get into the Metaverse without the need for special hardware, headsets, or equipment.

The goal, Acunto said, is to provide a high-quality experience.

“We see [the metaverse] Allowing content creators to connect with audiences in an immersive way and bring the brand within those experiences and engage those audiences,” Acunto said. “You’ll see the triangular relationship we’ve built with Warner Discovery. “

Transaction details

The deal between Infinite Reality and Newbury Street is secured by PIPE (Private Investment Public Equity) financing. This additional funding will be used to ensure that Infinite Reality meets the minimum financing requirements needed to complete the merger.

The deal is worth approximately $1.85 billion in equity in the combined company and will give it $128 million.

Upon completion of the transaction, NBST will be renamed Infinite Reality, Inc. and the combined company’s common stock is expected to be listed on Nasdaq under the new ticker symbol.

After payment of transaction costs, net proceeds will be used to continue to build
Infrastructure to expand teams in Europe, Asia and the US to accelerate marketing of Infinite Reality
Products and services focused on sports and entertainment, music, broadcasting and branding, and
Financing for future acquisitions.

All current iR shareholders are rolling over their existing equity. Newbury shareholders will also receive contingent value rights as part of the deal, so they may be entitled to additional shares of the combined company under certain circumstances. Completion of the proposed business combination is subject to approval by shareholders of Infinite Reality and Newbury, as well as regulatory and other closing conditions.

In particular, most SPACs require a certain amount of capital after shareholders vote to close the deal and after they vote on whether to cash out or continue investing in the combined company.

Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal counsel to Infinite Reality, and
Brian Cave Leighton Pesner LLP. Ackerman LLP Served as Legal Counsel Along with Newbury
Ellenoff Grossman & Schole LLP.

Newbury Street Acquisition Corporation is a blank check company for the purpose of entering
merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or
Merger with other similar businesses of one or more businesses or entities. The company is led by Bushey and Chief Financial Officer Kenneth King.

“We see that the Metaverse is really about creating immersive experiences, allowing our customers to build those experiences, having data, being able to use their imagination to create the experiences their customers want, allowing them to open up their customers And create real value space,” Aquinto said. “But we don’t think it’s a single place.”

It’s not like the 1990s, when companies like AOL dominated the Internet business, he said. Parallel to today is Facebook rebranding to Meta in an attempt to get a head start on the market.

“It’s a broader format where many different businesses will be able to take their ideas and apply them in a way that helps their business plans,” Acunto said.