LONDON: Mirriad Advertising plc (AIM: MIRI), a virtual in-content advertising and product placement company, has signed binding agreements with a U.S. technology firm to advance its presence in the American market, the company announced Monday.
Under the deal, the U.S. partner will acquire exclusive rights to market Mirriad’s virtual product placement (VPP) technology to existing media partners in the country. The agreement, initially outlined in a May 13 announcement, includes a one-time payment of £0.2 million and a revenue-sharing arrangement.
Mirriad also finalized a securities purchase agreement in which the U.S. firm will acquire 19.9% of Mirriad Inc., the company’s American subsidiary, for £0.2 million in cash. The sale, expected to fund general working capital, will reduce Mirriad Advertising’s ownership in Mirriad U.S. to 80.1%. Completion of the transaction remains subject to additional fundraising efforts.
A separate omnibus agreement establishes a revenue-sharing framework. In the first year following the transaction’s completion, Mirriad U.S. will allocate 75% of net revenue to the U.S. partner and 25% to Mirriad. The share increases to 80% for the U.S. firm in the second year and 90% beyond that.
Following the deal, Mirriad U.S. will reduce its board to a single director appointed by the U.S. partner. Certain business decisions—including equity sales, mergers, and major financial transactions—will require supermajority approval.
The U.S. partner will oversee Mirriad U.S.’s operations and administrative services at its own cost. Mirriad Advertising will continue offering strategic advisory support for at least a year, with automatic annual renewals unless terminated by either party.
Mirriad specializes in embedding virtual advertisements into TV shows, films, and digital content, allowing brands to integrate messaging seamlessly into media experiences.