Metro One Telecommunications Inc (OTC:WOWI) Stock Soars: What’s The Buzz?

On Tuesday, many companies hit the newswires as the markets reopened following Christmas, and one of the companies that had come into focus was Metro One Telecommunications Inc. (OTC:WOWI). Yesterday, the company announced that it had inked a non-binding term sheet related to the proposed reverse merger with XR Inc., a leading player in the virtual reality tech space.

As per the provisions of the term sheet, Metro One Telecommunications would create a fully owned subsidiary unit in the State of Delaware, and that would be merged with the surviving entity, Inception XR. The shareholders in Inception XR would then become the controlling stockholders in Metro One. In the news release yesterday, it was also noted that the transaction was going to be closed subject to the signing of a definitive agreement and other closing conditions. All those would be completed by the conclusion of the first fiscal quarter of 2024.

In this context, it may be a good move for investors to get a better idea of Inception XR as a company. It had been established in 2016 as an EdTech software developer that specialized in immersive media so as to provide better learning outcomes. The company was known for leveraging augmented reality, 3D web, and virtual reality in its products.

Since then, the company has emerged as one of the major players among K–6 providers of educational content meant for the publishing and telecom industries. Following the onset of the COVID-19 pandemic, which led to considerable difficulties for the healthcare sector, its immersive platform underwent an expansion and served the needs of the healthcare sector. In 2023, Inception XR is on course to hit revenues of around $4.8 million and also record a positive EBIDTA. As per the term sheet, the valuation of Metro One Telecommunications after the raising of new capital and reorganization would be around $65 million.