Pires to benefit from SVV's partial divestment of VR Education

Technology-focussed Pires Investments updated the market on its investment in Sure Valley Ventures (SVV) on Monday, in relation to its portfolio company, virtual reality technology provider VR Education Holdings.

The AIM-traded firm said that, given the “significant progress” VR Education had made, and the appreciation in its share price since listing on AIM in March 2018, SVV had sold 3,362,000 shares, receiving gross proceeds of £0.52m, to realise and return the cost of its initial investment.

Pires said SVV still believed VR Education had “significant” growth potential, and planned to retain the balance of its shareholding of 10,578,580 shares, or 4.38% of the company, valued at £1.82m based on the closing mid-market on 19 June.

The current share price of VR Education represented 465% of the price at which SVV made its initial investment.

Pires said the funds received from the sale of shares would be distributed to SVV's investors, and it expected to receive around £65,000 in due course.

It noted it was the second distribution of funds it would have received from its investment in SVV since it was made around seven months ago.

The first distribution from Pires' investment related to the sale of Artomatix, which was announced in December, generating a return of €0.8m (£0.72m) to Pires.

Pires has an interest of around 13% in SVV, with SVV being a venture capital fund focussed on investing in the software technology sector, with a specific focus on artificial intelligence, the internet of things and augmented and virtual reality.

“Thanks to the continued progress made by VR Education over recent months, we are delighted to note SVV's partial sale of shares to return its initial investment made into VR Education,” said chairman Peter Redmond.

“This marks the second realisation and distribution of funds to Pires, around some seven months after having made our initial investment.

“We believe that this realisation is further endorsement of Pires' investment strategy and, with the software technology sector poised for further growth, we therefore hope this is the second of many.”

At 1049 BST, shares in Pires Investments were down 1.37% at 3.6p.