ReKTGlobal Owner Infinite Reality Plans Nasdaq Listing in Early 2023

Key insights

6 takeaways

01
Metaverse company Infinite Reality plans to go public in Q1 2023 through a merger with the Nasdaq-listed SPAC, Newbury Street Acquisition Corporation (NBST).
02
The merger is projected to generate $128 million in proceeds and establish a combined company with an equity value of $1.85 billion.
03
Upon completion of the deal, the SPAC will be renamed Infinite Reality, Inc., with its stock, warrants, and units expected to trade on the Nasdaq.
04
Infinite Reality previously acquired ReKTGlobal in 2022 for $470 million, a transaction that included the esports franchises London Royal Ravens and Rogue.
05
The company is pursuing a PIPE (private investment in public equity) offering to raise additional capital as part of the transition to a public entity.
06
The combined valuation of the Infinite Reality and ReKTGlobal entities was previously estimated at $2.47 billion.

Summary

Metaverse company Infinite Reality announced plans to become a publicly traded entity in early 2023 through a definitive business combination agreement with the Nasdaq-listed special purpose acquisition company (SPAC) Newbury Street Acquisition Corporation. Upon completion of the merger, the combined entity will operate under the name Infinite Reality, Inc., with its common stock, warrants, and units expected to list on the Nasdaq Stock Market.

The transaction is projected to generate $128 million in proceeds, excluding potential capital from a private investment in public equity (PIPE) offering. The combined company is expected to hold an equity value of approximately $1.85 billion, with roughly $1.7 billion attributed to Infinite Reality. This move follows Infinite Reality’s earlier acquisition of the entertainment conglomerate ReKTGlobal for $470 million, a deal that brought gaming-focused editorial assets and prominent esports franchises, such as the London Royal Ravens and Rogue, under its corporate umbrella.

While the merger represents a significant development for the esports and gaming sectors, the transition faces potential headwinds. Market analysts have noted that broader economic volatility, the cooling interest in web3 and metaverse technologies, and the poor performance of similar publicly traded esports entities—such as FaZe Clan—may present challenges for the company’s market debut. The proposed business combination is scheduled to be finalized during the first quarter of 2023.