EVR's MelodyVR wins contract to produce virtual reality content for Universal Music's artists
Companies: Napster Group PLC
Shares in EVR Holdings jumped 20% on Monday morning after the AIM-listed virtual reality music content creator announced it had won a multi-year contract with Universal Music Group for the right to create and distribute VR content for UMG's artists and labels. The deal also gives Universal Music Leisure the rights to 43m shares in EVR at an exercise price of 12.375p.
Under the agreement, MelodyVR a subsidiary of EVR, will be allowed to produce and distribute VR content created with Universal artists, with the content created initially available on MelodyVR, followed by a period of "joint-exploitation" by both parties.
The companies will share the revenue generated from the commercialisation of virtual reality content featuring Universal artists on the MelodyVR app.
As part of the deal, EVR has granted entitlement options of 43m shares to UMG at an exercisable price of 12.375p, which are valid for 5 years, a 20% premium on Friday's close of 11.13p. Shares jumped to 13.90p briefly on Monday morning before falling back to 12.75p shortly afterwards - still significantly ahead of Friday's close.
Speaking about the deal, CEO Anthony Matchett said it was a "significant milestone" and a big achievement for the company:
"UMG is the world's leading record company which owns and operates a broad array of businesses engaged in recorded music, music publishing, merchandising, and audiovisual content. UMG represents a significant number of the world's most popular chart-topping artists and we look forward to working closely with UMG to create and distribute ground-breaking virtual reality content as well as to hosting UMG artists on the MelodyVR platform."