Immersed Inc, a maker of software used in augmented and virtual reality (AR/VR) technology for remote working, has agreed to go public through a merger with a blank-check acquisition firm, according to people familiar with the matter.
According to the sources, Immersed will merge with Maquia Capital Acquisition Corp, a special purpose acquisition company (SPAC), in a deal that will value the Austin, Texas-based company at around $150 million.
Immersed is raising bridge financing through convertible notes from investors, including Intel Corp CEO Pat Gelsinger, former football player Tim Tebow, and All Blue Capital as part of the deal.
According to the sources, the deal value does not include the proceeds of $160 million raised by Maquia Capital Acquisition in May 2021. Immersed is in talks to raise additional financing through private investment in public equity (PIPE).
The sources added that Immersed expects access to the SPAC’s proceeds, barring redemptions. According to the sources, the transaction will be announced as early as Wednesday.
SPACs, or blank-check firms, are shell companies that raise funds in an IPO and place it in a trust to merge with a private company and go public.
Dealmaking involving such investment vehicles peaked in 2021 before falling out of favour with investors, who were left with massive losses in most of these deals.
Immersed, founded in 2017 by software engineer Renji Bijoy, develops spatial computing software that allows employees to work remotely.
It is developing new software and hardware tools for enterprise customers, including an artificial intelligence-powered assistant. According to the sources, Immersed will be listed on the Nasdaq under the ticker “AIMR” after the deal closes.
