Immotion Group PLC (LON:IMMO) has raised £1.35mln via a share placing to shore up its balance sheet amid the ongoing coronavirus pandemic.

The ‘out of home’ virtual reality entertainment firm sold 54mln shares at 2.5p per share, a 28.6% discount to its closing price on Tuesday.

WATCH: Immotion Group looking to re-purpose business to come out stronger and faster post lockdown

In an update on its operations, Immotion said it is confident in its core strategy despite the pandemic and that its installed base and contracted pipeline provided “a path to profitability once trading conditions return to pre-[coronavirus] levels”.

The firm added that based on the relaxation of lockdown measures in the US it hoped to be able to shortly begin completion of the works underway on its major installation at the Mandalay Bay hotel in Las Vegas as well as other contracted installs.

Immotion also said it has focused on “tight management of cash” during the pandemic and that its operating costs had fallen to £200,000 in April from a predicted level of £310,000 following cost-saving initiatives.

Looking ahead, the firm said it is “looking to enter new market segments with new formats, and will, following lockdown, be finalising the development of its dinosaur VR experience and immersive pre-show content”.

Immotion shares were 22% lower at 2.73p in afternoon trading on Wednesday.