Ram Investment Group (LON:RAM), the outdoor advertising group, has signed a joint venture agreement that will see it begin marketing 3D advertising screens to shopping malls. The group’s RAM Vision arm has struck a deal with Free Ray UK Ltd, a subsidiary of Free Ray FZ LLC, the sole distributer and business partner of Tridelity Display Solutions Gmbh. The joint venture covers leading edge 3D flat screen technology that can be viewed without the need of special glasses.
Free Ray, which is based in Dubai, will invest £1.5m into capital expenditure as part of the joint venture with RAM Vision. The arrangement comprises individual exclusivity terms on each of RAM Vision's contracted UK shopping malls scheduled for the 3D roll out. The joint venture will market under the brand name RAM3D. The RAM Investment Group share price remained unmoved at 4.25p.
Ram Vision is projecting gross sales revenues for the joint venture from 3D advertising sales to exceed £600,000 in the first year of operations with the expectation that this new prospective profit centre will not impair the advertising revenues it currently generates with 2D advertising. Free Way, jointly with Tridelity, has already successfully fulfilled major advertising projects in Dubai, Abu Dhabi, Turkey, Egypt, Tunis, Kuwait and Lebanon for major international brands.
Tim Baldwin, the executive chairman of RAM, said: “We are very pleased about the joint venture. Firstly because it will give us incremental revenue without the costs of deploying capital or material additional operating expense. Secondly because it demonstrates to our property partners that we are at the leading edge of new technology to enhance the Mall environment and thirdly because 3D is likely to bring us in touch with a greater range and depth of premier international brands.”
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