Effective October 1, 2024, The Glimpse Group divested its subsidiary QReal and its related Turkey operations. This strategic move was undertaken as management believed the virtual try-on business of QReal had greater growth potential as an independent entity.
The divestiture is expected to generate approximately $4 million in net cash value for Glimpse over two years, including annual cash savings of $1.2 million to $1.5 million. This action also simplifies operations by reducing headcount and eliminating country-specific risks.
As part of the transaction, Glimpse retained revenue from QReal's largest customer initially. The company also received a $1.56 million senior secured convertible note and a minority equity stake in the newly independent entity, providing continued exposure to QReal's future success.
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