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UPDATE: Wet ’n Wild Las Vegas bets on Lo-Q’s Q-band

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Lo-Q (LON:LOQ) is to launch its innovative Q-band virtual queuing device at two Wet ‘n Wild water parks, one of which is in Las Vegas.

Wet ‘n Wild Las Vegas and Wet ‘n Wild Phoenix, both of which are the biggest water parks in their respective US states, have signed five-year deals with the AIM-listed company. The former is the only water park in the world’s gambling mecca.

It is the first deal with Village Roadshow Limited, Australia’s largest theme park operator, which runs three Wet ‘n Wild parks in the States as well as a number of attractions down under. Lo-Q will share the revenues generated from Q-band with Village Roadshow.

Q-band is a waterproof wristband that can be rented and used to reserve a ‘virtual’ place at a park’s most popular slides so that users spend less time queuing.

“I am delighted to announce these agreements with our newest parks: Wet'n'Wild Las Vegas and Wet'n'Wild Phoenix,” said Lo-Q’s chief executive Tom Burnet.

“These five year contracts are particularly exciting for Lo-Q as they open up a new relationship for us with Village Roadshow Theme Parks.

“Q-band is the first virtual queuing system of its type to be used by Village Roadshow in any of their parks and we are immensely proud that the Wet'n'Wild Parks in Las Vegas and Phoenix have chosen us and our innovative water park solution as the first step in this direction.”

Broker Canaccord Genuity lifted its target price on Lo-Q on the back of the news from 500p to 680p.

It points out that Village Roadshow offers a new route into China, where it has a partnership with Guangzhou R&F Properties to design and build a mega park. It follows Lo-Q’s deal with the Sanderson Group last year that opened the door to the lucrative Asian market.

The broker sees no real risk to its outlook, but says there is a chance queuing related services could grow faster than it forecasts – something it has not factored into its target price.

“Overall, we have not factored significant long-term upside into our forecasts from some of Lo-Q’s high potential customers,” concluded Canaccord, which keeps its ‘buy’ rating.

The shares picked up 12p on Monday to change hands for 624p each. Reported by Proactive Investors 2 days ago.

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