MelodyVR raises $8.9m, prepares to rebrand as the Napster Group – Music Business Worldwide

 MelodyVR raises $8.9m, prepares to rebrand as the Napster Group – Music Business Worldwide

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UK-listed virtual reality music company MelodyVR, which recently completed its acquisition of US-based streaming service Napster, has raised a new investment of £6.48m (approximately $8.9m) via an issue of convertible Loan Notes.


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The company is also planning to rebrand as the Napster Group and as reported by the Guardian, will list on the London Stock Exchange’s Alternative Investment Market on February 26.

Originally announced in August 2020, RealNetworks’ sale of Napster to UK-based virtual reality music company MelodyVR is was closed on December 30, 2020.

Valued at the closing date, the price of the transaction is approximately $70.6m, according to RealNetworks, comprising $15m in cash, $11.6m in MelodyVR stock, and assumption by MelodyVR of approximately $44m in payment obligations, primarily “to various music industry entities”.

Under the terms of new investment agreement announced yesterday (February 8) via a regulatory update on the London Stock Exchange, Swiss Investment firm Nice & Green S.A has agreed to subscribe for unsecured Loan Notes totalling £6.48m ($8.89m) to be issued over a 12 month period commencing February 2021.

The proceeds of the Loan Notes, according to the release, will support the development and launch of the new integrated mobile app which will combine the best content and functionality from both the Napster and MelodyVR businesses to create a new music platform during the course of 2021.

The investment will comprise the subscription of 648 Loan Notes, each having a nominal value of £10,000 (approximately $13,736.26) and £6.48 million in total.

The Loan Notes will be subscribed for by the investor in 12 tranches of £540,000 ($741,758.24) at MelodyVR’s request, each tranche not to be more than 21 days apart.

“We are delighted to announce this convertible funding which will support the development of our new Napster music service throughout the course of 2021.”

Anthony Matchett, MelodyVR

Anthony Matchett, Group CEO said “We are delighted to announce this convertible funding which will support the development of our new Napster music service throughout the course of 2021, whilst remaining in the best interest of shareholders due to the principal terms of the agreement.

“We are pleased to welcome Nice & Green as strategic investors into our company and look forward to working together more closely.”

“Nice & Green is proud to finance and invest in such an ambitious, disruptive and ground-breaking project supported by a fantastic team.”

Benoit Villers, Nice & Green

Benoit Villers, Managing Partner of Nice & Green, added: “Following its recent acquisition of Napster, MelodyVR will pioneer the next-generation of music service and offer the first ever music entertainment platform combining immersive visual content and music streaming.

“Nice & Green is proud to finance and invest in such an ambitious, disruptive and ground-breaking project supported by a fantastic team.”Music Business Worldwide

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