xReality jumps 22% at lunch as company’s military and law VR training tech to be sold in the US, EU

Tue 04 Oct 22, 12:46pm (AEST)
Militarised police guard a government building in Denver, US, while protesters holding Trump signage are featured in the background
Source: Unsplash

Key Points

  • xReality Group’s US subsidiary, Operator Tactical Solutions (OTS), provides VR headgear to train military and police
  • USA’s Endurance Group will now distribute OTS’ VR tech to military and law enforcement customers in the US
  • Shares are up 22% at lunch to 3.3c

xReality Group’s (ASX:XRG) share price is up over 20% in lunchtime trades to 3.3c as the company reveals its military and law enforcement VR training tech will be distributed in the US by company Endurance Group. 

The ultimate appeal of VR tech in this context?: simulated combat training.

Also worth remembering is this gives xReality exposure to a US market with over two million personnel across military and law enforcement and another 70,000 in special operations. 

Endurance Group, in turn, sells hardware to military and police units in the US; it will now sell xReality’s products through the latter’s subsidiary, Operator Tactical Solutions (OTS). 

Two companies with similar backgrounds

OTS was launched by xReality last year and its team are largely former military personnel, perhaps explaining the relatively rapid relationship building process with the US private defence sector. 

Endurance Group, in turn, is run by veterans and holds key recognition status in the US allowing it to expedite commercial defence opportunities (that recognition relates to the company being managed by disabled veterans of war). 

xReality expects the commercial partnership to allow it to expand its market footprint. 

High-level expansion potential 

Worth noting is that Endurance Group’s customer base is not just limited to the US; but also expands to Canada and select European Special Operations divisions. Which, exactly, remain undisclosed. 

The company also enjoys strong engagement from police forces. US ‘SWAT’ teams and “multiple broader US law enforcement agencies” also stand in line as possible customers for xReality’s VR simulation training tech.

Only back in April, xReality signed a non-binding Memorandum of Understanding (MOU) with Endurance Group; that agreement saw OTS products demonstrated to Endurance customers for the first time. 

Strong user-end feedback was recorded, the company states, and the deal accelerated. 

“This agreement is a significant milestone in our international strategy,” xReality Group CEO Wayne Jones said. 

“Endurance has a well established relationship with the special forces community in North America and Europe which will allow exposure to our products through existing channels.” 

XRG's three month charts make clear the sharp rise in interest today
XRG's three month charts make clear the sharp rise in interest today


Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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