Announcement
EVR Holdings PLC : Strategic Partnership with John Gore Organization
RNS Number : 5633B
EVR Holdings PLC
07 June 2019
EVR Holdings plc
("EVR" or the "Company")
Strategic Partnership with John Gore Organization for Theatrical Content
New Equity Issue at 4.5p per share to raise £5.0 million
Issue of Option to potentially raise a further $10.0 million valuing the Company at £220m
EVR Holdings plc (AIM:EVRH), the leading creator of virtual reality entertainment content and operator of the MelodyVR platform, is pleased to announce that it has entered into a binding heads of terms for a strategic partnership with The John Gore Organisation, ("JGO") a leading developer, producer, distributor and marketer of Broadway theatre worldwide, via JGO's subsidiary; Broadway Channel LLC ("BCL").
The strategic partnership will see the creation of a new joint venture in order to facilitate the VR capture, production and distribution of Broadway theatre content globally. In addition, as part of this co-operation, JGO has provided a £5m investment commitment to the Company to underpin the success of the project and to further align both company's long-term strategic interests.
Under the leadership of 13-time Tony-winning theatre producer and owner John Gore, his family of companies which includes Broadway Across America, Broadway.com, The Broadway Channel, BroadwayBox.com, and Group Sales Box Office ("Broadway"), develops, produces and distributes live theatre content in 45 cities across North America, London's West End, Japan and China. Its Broadway.com platform has featured internationally recognised theatre productions such a Wicked and Disney's The Lion King and provides TV audiences with on-demand access around the world. Broadway has won Tony Awards in every producing category as well as numerous other Drama League, Drama Desk and Olivier Awards.
The first piece of content to be released under the strategic partnership is an exclusive experience featuring Joe Iconis, in which he takes viewers through a tour of the Tony Awards suite at Sofitel New York, before heading to his Tony nominated new musical Be More Chill. The content will be released in companion with the CBS special "At the Tony's" as the theatrical community gears up for Broadway's biggest night. The Be More Chill experience will be the first step in production-driven content. As a leader in capturing and distributing live concerts in VR, MelodyVR in partnership with John Gore and Broadway, is now creating the opportunity for the first Broadway show to be streamed straight to fans homes in full immersive virtual reality.
During the year to May 2019 some 14.8 million people attended Broadway shows, including 38 new productions, making it the most attended season in Broadway recorded history (source: The Broadway League]). Theatre represents a new and exciting vertical for the Company and a further endorsement of the Company's inherent technical expertise. The partnership with Broadway, organisations with a rich established history and proven track record provides for a solid partnership for the creation and distribution of new and exciting VR content appealing to a broad demographic. The growth in attendance for the 2018 - 2019 season topped that of the ten professional New York and New Jersey Sports teams combined (source: The Broadway League) and this initiative will help in making the experience of a theatre production more accessible to everyone.
In addition, Mr. John Gore has conditionally agreed to, prior to the expiry of 10 working days from today's date, personally subscribe for 111,111,111 new ordinary shares of 1p each in the Company ("Ordinary Shares") at a price of 4.5p per Ordinary Share, representing an approximate 25.0% premium to the mid-market closing price on 6 June 2019, and also representing approximately 8.5% of the Company's current issued ordinary share capital, to raise gross proceeds of £5.0 million. JGO will also receive an option to subscribe for the equivalent of $10 million of new Ordinary Shares at a price to be determined at the time of exercise which would value the Company's issued equity share capital at approximately £220 million. The exercise period for this option will expire on 31 December 2019 at which time it will automatically lapse if not exercised. Application will be made for the admission of 111,111,111 new Ordinary Shares to trading on AIM in due course.
John Gore, owner and CEO of the John Gore Organization, said, "Every single thing we do at JGO is centred around the goal of serving tantalising content to theatre fans, regardless of their geographical location. Using VR technology is just one more way to deliver Broadway to fans around the globe, especially when the live experience of Broadway and touring Broadway is beyond their reach."
Anthony Matchett, Exec. Chairman and CEO of EVR Holdings/Melody VR adds, "Having achieved a series of ground-breaking firsts with the music industry, I'm thrilled to announce our partnership with John Gore, which will see globally recognised theatrical productions made available to consumers worldwide. At the core of MelodyVR, is our vision of connecting fans with unobtainable experiences, in new and immersive ways. Musical theatre is a natural evolution in our journey and I'm pleased that we'll soon be delivering even more amazing content to consumers via our partnership with JGO."
For further information please contact:
EVR Holdings plc
Anthony Matchett, Executive Chairman & CEO Tel: +44 (0) 20 7097 5737
Andy Brown, Chief Financial Officer www.evrholdings.com
Investec Bank plc: Nominated Adviser, Financial Adviser Tel: +44 (0) 20 7597 5970
and Corporate Broker
Corporate Finance: David Anderson / Junya Iwamoto
Corporate Broking: Sara Hale
Notes to Editors:
MelodyVR is a wholly owned subsidiary of EVR Holdings plc ('EVR'), a company that is listed on the AIM market of the London Stock Exchange under the ticker EVRH.L.
For more information on Melody VR, please visit:
www.melodyvr.com
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