Metaverse company Infinite Reality goes public via $1.85 billion SPAC

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Infinite Reality, a company that takes companies to the metaverse, has announced plans to go public through a special purpose acquisition company, or SPAC. The company plans to raise at least $128 million at a valuation of $1.85 billion.

Under the agreement, Infinite Reality would be combined with Newbury Street Acquisition Corporation (NASDAQ: NBST), a publicly traded investment vehicle company. Infinite Reality said it has partnered with some of the world’s biggest brands, including Warner Bros. Discovery Sports, to promote immersive virtual experiences and new monetization opportunities in Web3-enabled showrooms and events.

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

In an interview with GamesBeat, CEO John Acunto said the company is not yet disclosing information about investors in the PIPE deal.


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Acunto said the company is not yet disclosing financials, such as whether it was profitable or not. He said the company is in a transitional phase and “is at a blazing pace in creating immersive experiences for our customers.” He said the $128 million figure does not include money from a PIPE.

As for the change in valuation, Acunto said this shows how the “global macroeconomics” have changed valuation dynamics.

“We actually feel really good about appreciation because we can meet the strict requirements [analysis],” he said. “And we’re looking at other companies that have similar assets with 90% declines in the market. This is a big win for us.”

As for whether gaming will lead the way to the metaverse, Acunto said he didn’t really get into that, despite purchasing RektGlobal. Acunto said the deal with RektGlobal, which owned an esports company, was aimed at connecting brands with immersive experiences.

Infinite Reality goes public.
Infinite Reality goes public.

“Certainly, gamers have been in the metaverse for a while. They’ve been able to live in these communities and socialize and participate in many ways,” Acunto said. “I think what people don’t recognize is just the quality level of the products coming out and calling themselves metaverse at the level of these video games. That’s why we work hard for us to help brands create great immersive experiences. So that they can interact with these audiences, such as gamers, with these great experiences. We certainly see gamers as part of it, but certainly not necessarily the first early adopters.”

The transaction is expected to enhance the company’s offering of immersive audience experiences and commercial monetization opportunities. The transaction will add significant proceeds to Infinite Reality’s war chest.

“Our team was amazed at the opportunity Infinite Reality has to truly revolutionize the way people
to experience the internet in the future,” Tom Bushey, CEO of Newbury, said in a statement. “Infinite Reality has the expertise, innovation and scale to be a pioneer in helping brands connect directly with their audiences and customize their Metaverse experiences. Online commerce and entertainment will never be the same again. The creative talent and experience of this team sets Infinite Reality apart and all of us at Newbury are delighted to be their long-term partner.”

After payment of the transaction costs, the net proceeds are used for further expansion
Infinite Reality’s infrastructure, expanding its teams, beginning robust marketing of its products and services, financing future acquisitions and for other general corporate purposes.

The company said part of its value is that it’s already trusted by some of the world’s biggest brands. Infinite Reality said it is breaking new ground for businesses, sports teams, celebrities, influencers and other creators to foster immersive personal connections and commercial opportunities in Web3-enabled events and showrooms. Plus, it said it makes it easy to get into the Metaverse, with no special hardware, headsets, or equipment required.

Acunto said the goal is to deliver high-quality experiences.

“We see [the metaverse] because content creators can connect with audiences in an immersive way, bring brands and reach those audiences in those experiences,” Acunto said. “You see that triangular approach with what we’ve built with Warner Discovery.”

Transaction details

Infinite Reality raises $128 million at a valuation of $1.85 billion.

The transaction between Infinite Reality and Newbury Street is secured by private investment in a public equity (PIPE) financing. This additional cash pot can be used to ensure that Infinite Reality meets the minimum funding requirements to complete the merger.

The transaction values ​​the combined company at equity of approximately $1.85 billion, and will provide $128 million.

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

After payment of the transaction costs, the net proceeds are used for further expansion
infrastructure, expand teams in Europe, Asia and the United States, accelerate marketing of Infinite Reality
products and services with a focus on sports and entertainment, music, broadcast and brands, and on
finance future acquisitions.

All current iR shareholders roll over their existing equity. Newbury shareholders will also receive a contingent value right as part of the transaction that may entitle them to additional shares of the combined company under certain circumstances. Completion of the proposed business combination is subject to shareholder approval of both Infinite Reality and Newbury, as well as regulatory and other closing conditions.

Specifically, most SPACs require a certain amount of funding after shareholders vote to close the deal and after they vote on whether or not to cash out or remain invested in the combined company.

Fried, Frank, Harris, Shriver & Jacobson LLP serves as legal counsel to Infinite Reality along with
Bryan CaveLeighton Paisner, LLP. Ackerman LLP serves as legal counsel along with Newbury
Ellenoff Grossman & Schole LLP.

Newbury Street Acquisition Corporation is a blank check company created to get in
in a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or
other similar business combination with one or more companies or entities. The company is led by Bushey and Kenneth King, chief financial officer.

“We see that the metaverse is really about creating immersive experiences, enabling our customers to build those experiences, take ownership of the data, use their imaginations to create experiences that their customers want their customers to access and real life experiences. can create value in the space,” Acunto said. “But we don’t see that as a single place.”

It’s not like the 1990s when a company like AOL dominated the Internet business, he said. The parallel today is Facebook changing its name to Meta to be the first to seize the market opportunity.

“It’s a much broader format, where many different companies can take their creative ideas and apply them in a way that benefits their business plan,” said Acunto.

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