14 Dec 2020 07:00
14 December 2020
Pires Investments plc
("Pires" or the "Company")
Investment in Low6
Pires Investments plc (AIM: PIRI), the investment company focused on next generation technology, is pleased to announce that it has entered into a share subscription agreement to subscribe for 6,667 ordinary shares in Low 6 Limited ("Low6") at a price of £30 per share for a total consideration of £200,010. Low6 is a UK incorporated company that has developed a next generation sports betting platform. This investment forms part of a £1.5 million funding round.
Low6 provides a white-labelled mobile platform to sports teams/franchises that enable them to offer a pooled sports betting experience to users of their fan-based apps. The Company's directors believe there is a significant market opportunity for sports betting products that are designed to enhance the excitement of watching sports whilst, at the same time, being engaging and simple to use.
Under its B2B business model, Low6 will enter into a partnership with a sports team or franchise which enables the Low6 product to gain access to the partner's established fan base thereby reducing customer acquisition costs and strengthening brand and customer loyalty, which ultimately enhances customer retention. At the same, Low6's business model enables the underlying partner to share in the revenue generated from the Low6 platform, an aspect which should be particularly attractive to fans of the sports team or franchise concerned. Low6 can either embed its platform within a partner's app or build the app for its partners. The Company believes that this partnership model is also highly scalable and Low6 expects to generate revenue from retaining a percentage of the stakes placed by the users of the platform.
Low6 already has several contracts with sports teams/franchises, including football clubs in the UK Championship and Scottish Premiership leagues. In addition, it also has partnerships with Sky Business and Yinzcam Inc.
Low6 has a three-year exclusive partnership with Yinzcam Inc, a US-based company which provides the apps for a number of the fan bases of leading sports teams/franchises with over 90 million installs of its mobile apps worldwide. It is currently involved with more than 190 professional teams, leagues and venues in the US, Canada, Spain and Australia. This relationship provides Low6 with access to this extensive client base. Low6 has also been working with Sky Business to develop a digitalised pub quiz product called Pubwars.
Low6 has raised over £8 million to date and plans to raise more funds through a pre-IPO funding round with a view to completing an IPO in H1 2021.
The £200,010 consideration for this investment will be satisfied from the existing cash resources of Pires.
Further information on Low6 can be found at https://low6.
Peter Redmond, Chairman of Pires, commented:
"We are pleased to be able to invest in Low6 at a key point in its development. We believe that Low6 has developed an exciting and innovative platform which is attractive both to sports clubs and their fan bases and, with the additional funding now being provided, they will be able to scale the business significantly."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 and the Directors of the Company take responsibility for this announcement.
Enquiries:
Pires Investments plc Peter Redmond, Chairman Nicholas Lee, Director | Tel: +44 (0) 20 3368 8961
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Nominated Adviser Cairn Financial Advisers LLP Liam Murray/Ludovico Lazzaretti
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Tel: +44 (0) 20 7213 0880 |
Joint Broker Peterhouse Capital Limited Duncan Vasey/Lucy Williams |
Tel: +44 (0) 20 7469 0935 Tel: +44 (0) 20 7469 0936 |
Joint Broker Mirabaud Securities Limited Peter Krens |
Tel: +44 (0) 20 3167 7221
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Financial media and PR Yellow Jersey Sarah Hollins Henry Wilkinson
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Tel: +44 (0) 20 3004 9512
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Notes to Editors
About Pires Investments plc
Pires Investments plc (AIM: PIRI) is an investment company providing investors with access to a portfolio of next generation technology businesses with significant growth potential.
The Company is building an investment portfolio of high-tech businesses across areas such as Artificial Intelligence ("AI"), Internet of Things ("IoT"), Cyber Security, Machine Learning, Augmented Reality and Virtual Reality ("AR/VR") and Big Data, which the Board believes demonstrate evidence of traction and the potential for exponential growth, due to increasing global demand for development in these sectors.
For further information, visit: https://piresinvestments.com/.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.