TEMPE, Ariz., Aug. 30, 2017 (GLOBE NEWSWIRE) -- VirTra, Inc. (OTCQX:VTSI), (the “Company”), a global provider of simulators for the law enforcement, military, educational and commercial markets, announced that on August 16, 2017 it redeemed from Modern Round Entertainment Corporation (“Modern Round”) 919,382 warrants currently exercisable on a net cashless exercise basis into 345,823 shares of the Company’s common stock and 919,383 warrants that were amended to allow for an exercise on a net cashless basis into 48,415 shares of the Company’s common stock, which was in line with the Company’s prior practices. The aggregate redemption consideration was $773,495 based on a value of $1.962 per share. The entire 1,838,765 of warrants were assigned to Modern Round by affiliates of that company. Modern Round agreed to use the proceeds from this transaction to fund the development of a second stand-alone Modern Round combined dining and entertainment location centered on an indoor shooting experience featuring the Company’s virtual shooting technology that it licensed to Modern Round. Following the transaction, Modern Round paid the Company an additional $118,427 in royalty payments, thereby fulfilling the first year minimum royalty payments of $280,000 to maintain its exclusive rights to license the Company’s technology in Modern Round locations through the initial year ending on May 31, 2018.
In addition, the Company and Modern Round amended the Co-Venture Agreement entered into between them to permit Modern Round to enter into one or more sublicensing or revenue sharing agreements utilizing the Company’s technology with established operators of stand-alone location-based entertainment companies. Modern Round agreed to pay the Company royalties for any such sublicenses in an amount equal to 10% of the revenue paid to Modern Round in cases where Modern Round pays for the cost of the equipment for such location, or 14% of the revenue paid to Modern Round in cases where it does not pay for the cost of the equipment.
About VirTra
VirTra is a global provider of simulators for the law enforcement, military, educational and commercial markets. The Company’s patented technologies, software and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship and related training that mimics real world situations. VirTra’s mission is to save and improve lives worldwide through realistic and highly-effective virtual reality and simulator technology. Learn more about VirTra at www.VirTra.com.