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Shares in Indoor Skydive (ASX:IDZ) soar on Red Cartel acquisition

Consumer
ASX:IDZ
11 August 2021 11:30 (AEST)

Source: Indoor Skydive

Shares in Indoor Skydive (IDZ) were up as much as 16.7 per cent after the company announced it had acquired Red Cartel.

Red Cartel is one of Australia’s leading experts in virtual reality (VR), augmented reality (AR) and extended reality (XR).

It has over 20 years’ experience working across the entertainment, government, mining, health care, and oil and gas sectors, partnering with the likes of eBay, Qantas, Cadbury and Red Bull.

Total consideration for the acquisition is $609,000 with an upfront payment of $12,191.

The remaining amount will be paid through the issue of Indoor Skydive shares over the next three years.

The total amount of shares issued for each payment will be calculated on the greater of a set share value or the 15-day volume-weighted average price at the anniversary of the completion of the acquisition.

Upon completion of the acquisition, Red Cartel will design and create free roam and arcade-style content for Indoor Skydive’s subsidiary, FREAK Entertainment.

Furthermore, Red Cartel will provide its military virtual reality training tool which it has been working on over the past 12 months.

Live trials are expected to begin within six months of the acquisition.

CEO Wayne Jones believes the acquisition will be extremely beneficial to Indoor Skydive.

“The acquisition of Red Cartel unleashes some major opportunities in both the consumer and enterprise markets,” Mr Jones said.

“The ability to custom build content and specific equipment to military grade positions us to engage direct with military and law enforcement units around the world.”

Shares in Indoor Skydive were up a healthy 11.1 per cent, trading at two cents apiece at 12:51 pm AEST.

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