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XReality Group (ASX:XRG) has won a contract supplying its first-responder-training VR tech to the State of Texas, valued at US$5.71 million (A$8.8 million).
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Going to the Texas Department of Public Safety (TDPS), effectively a police department, the contract is the biggest to date for XRG’s ‘Operator XR’ product.
Operator XR, for all intents and purposes, is a virtual reality software program that aims to train police officers and soldiers in live fire situations.
The market reaction on Thursday suggests the market has just found its latest defence-aligned stock, and to XRG’s credit, it’s been trying to get into that space for a good while.
Also helping from a vibes-based analysis is that Texas, of all states, is the one buying it.
“Given Texas is the second-largest U.S. state by both population and area, the DPS is a significant entity with substantial operational scale, managing the safety and security for over 30 million residents,” XRG wrote on Thursday.
The question now, surely, is how much further XRG can climb, which will come down to the securing of future contracts. That, and perhaps, write-ups in the Texas Tribune.
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As of midday Thursday, the pharmaceutical company had 743 million shares on issue and, according to its August 31 quarterly report, $3.4 million in cash. It spent $1.3 million in OpEx across the period.
XRG last traded at 4.5cps.
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