Deals
Armstrong Ventures plc to acquire MelodyVR Ltd
Armstrong Ventures plc (AIM:AVP), the AIM listed company investing in the media, technology and healthcare sectors, announces today that it has conditionally agreed to acquire MelodyVR Ltd, a company which has developed technologies, products and services that enable users to consume immersive virtual reality ("VR") music experiences, for a total consideration of £5.12 million to be satisfied by the issue of New Ordinary Shares at 1.1p each. The Acquisition, if completed, will constitute a reverse takeover under the AIM Rules and as such is subject to the approval of Shareholders at the General Meeting of the Company to be held on 13 May 2016, notice of which is set out at the end of the Admission Document, which will be posted to Shareholders today and is available on the Company's website: www.armstrongventures.com.
Key Highlights
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The consideration for the Acquisition of £5.12 million is to be satisfied by the issue of 465,702,743 New Ordinary Shares at a price of £0.011 per share, which values the Existing Share Capital at £2.6 million. |
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It is proposed that the Company changes its name to EVR Holdings plc ("EVR") following a General Meeting to be held on 13 May 2016. |
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Proposed Share Consolidation whereby every 100 Existing Shares of £0.0001 are converted into 1 New Ordinary Share of £0.01. |
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If the Resolutions are approved by Shareholders, it is expected that Admission will become effective and dealings in the Enlarged Ordinary Share Capital will commence on AIM on or around 16 May 2016. |
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The focus of the Company will be to provide consumers, via a number of monetised distribution channels, audiovisual and interactive material intended for use with virtual reality devices. |
Sean Nicolson, Chairman of Armstrong Ventures plc, said: "We are delighted to announce the proposed acquisition of MelodyVR, a business which is well positioned to benefit from the rapidly expanding VR sector. With a number of recognised global manufacturers having recently entered the market with new head mounted display VR headsets, the interest of consumers and investors alike has been reignited. Cumulative sales of VR headsets is forecast to reach 83.3 million by 2018 with the global market for recorded videos and live events alone potentially reaching US$7.3 billion of sales by 2025 with over 175 million users.
"We believe that MelodyVR's proposition will appeal to many music fans who have embraced the latest VR technology. MelodyVR offers an immersive music experience to fans who are unable to attend a live event due to geographical or financial constraints, age restrictions or simply to an event being sold out. It also gives music fans the opportunity to access recorded content.
"Following completion of the Acquisition, I am pleased to announce that Anthony Matchett and Steven Hancock of MelodyVR will join the Board together with Simon Cole, the current CEO of 7Digital Group plc. We look forward to welcoming them to the Board."
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