Metaverse Company InfiniteWorld Going Public In SPAC Deal: What Investors Should Know

Investors will have another pure play stock betting on the growth of the metaverse with a SPAC deal announced Monday morning.

The SPAC Deal: Metaverse infrastructure company InfiniteWorld is going public via SPAC merger with Aries I Acquisition Corporation RAM.

The merger prices InfiniteWorld at a pro forma enterprise value of $700 million. Included in the deal value is $93 million worth of cryptocurrencies currently owned by InfiniteWorld.

Public RAM shareholders will own 20.4% of the new company. After the merger, the company will trade as InfiniteWorld with the ticker JPG on the Nasdaq.

About InfiniteWorld: Acting as a bridge between the physical and digital worlds, InfiniteWorld “empowers brands and creators with the engine and technologies they need to engage customers and fans in the metaverse.”

The company offers infrastructure, marketplace solutions and content production platforms for items like non-fungible tokens.

InfiniteWorld said it has partnered with more than 75 brands and creators since it was founded.

Company owned segment DreamView was founded in 2016 by several former leaders at Lucasfilm and segments of The Walt Disney Company DIS. DreamView offers visual effects and 3D artforms, which have been used in blockbuster films, brand campaigns and sporting events.

“With the unique combination of our infrastructure and next-gen content production, InfiniteWorld is one of the ultimate partners for brands and the future of their digital content in the metaverse,” InfiniteWorld CEO Yonathan Lapchik said.

Related Link: What Cities And Countries Are Betting On The Metaverse 

Growth Ahead: InfiniteWorld said the merger will help accelerate its platform development and expand brand partnerships.

The list of brands that have used InfiniteWorld in the past or signed for future deals includes many well-known companies such as Amazon.com Inc AMZN, Disney, Wayfair W, Mattel MAT, Target TGT and Warner Brothers and Bleacher Report, both owned by AT&T Inc T.

“Branded content will be king in the metaverse, and we are proud to partner with some of the world’s most notable companies to engage with their consumers in the growing digital environment,” InfiniteWorld Chief Operating Officer Nathaniel Hunter said.

The company estimates a $2.5 trillion market size for the metaverse by 2030. Brands are expected to release products in the metaverse at a growing rate going forward.

InfinitieWorld said it has a pipeline of over 3,000 potential clients.

Financials: InfiniteWorld generates revenue from activity fees with NFTs, platform and subscription fees, along with content and production fees.

The company expects revenue to be meaningful beginning in 2022 and revenue to increase at a compounded annual growth rate of 130% from 2023 to 2025.

Estimated revenue is $19 million for fiscal 2022 and $71 million for fiscal 2023. The estimate for revenue in fiscal 2025 is $384 million. The company sees hitting positive EBITDA of $8 million in fiscal 2023.

Price Action: RAM shares are flat to $10.03 on Monday at the time of writing.