9th Dec 2020 14:11
MelodyVR Group PLC - London-based virtual reality content - Shares resume trading on AIM as it progresses its reverse takeover of music streaming service Napster, first announced in August. Under the terms of the US deal, a MelodyVR subsidiary will be merged into Rhapsody International Inc, which trades as Napster. MelodyVR will pay USD26.3 million to the sellers, including USD15.0 million in cash and the issue of 200 million MelodyVR shares. RealNetworks Inc - the majority owner of Napster with its 84% stake - said the total value of the deal is roughly USD70 million, as MelodyVR has USD44 million in payment obligations to "various music industry entities". It has been agreed that USD30 million in shareholder loans owed by the enlarged group will be written off.
MelodyVR conditionally raises USD10 million in a share subscription, issuing 201.3 million shares at 3.75 pence each. Also agrees to USD25 million delayed draw term loan facility from Davis Partnership LP. MelodyVR directors subscribe for 26.9 million of the subscription shares, including , Executive Chair & Chief Executive Officer Anthony Matchett, who now has a 6.4% stake. Calls general meeting for December 24 to approve the transactions.
Current stock price: 3.90p
Year-to-date change: down 25%
By Tom Waite; [email protected]
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