After successfully raising AU$7 million as part of a reverse takeover of Minerals Corporation, technology and entertainment company MSM commenced trading on the Australian Securities Exchange (ASX) on Wednesday, with share prices up 32 percent on the initial issue price.
According to the company, during early trading shares were as high as AU$0.079 per share, up from the AU$0.06 per share that was issued during MSM's initial raising round. A total of 117 million MSM shares were issued, which put the initial valuation of the company at AU$16.5 million.
MSM said it plans to use the AU$7 million capital raised to primarily fund the development and promote its product, Megastar Millionaire, a talent discovery contest platform that will connect performers and fans through an interactive gamification experience to search for new artists.
Backers of the company include Doug Barry, a founding investor of music streaming service Pandora and an advisor to TiVO, who owns more than 6 percent of MSM; US Hollywood producer John Baldecchi; and digital gaming executive Michael Pole.
MSM co-founder and chairman Adam Wellisch said the listing of MSM on the ASX is a "crucial first step" to changing the digital entertainment and media space.
"The global scale of Megastar Millionaire, complemented by highly supportive shareholders, makes for a very exciting start to what we envision to be a highly personalised digital entertainment experience," he said.
The company added it has already established strategic partnerships with Silicon Valley-based music content and community platform developer ToneDen, distribution platform Digital Riot Media, and talent agency Roar to assist in the development and marketing of the platform and the contests that will run on it.
"We are developing a model and brand for an industry-redefining talent discovery competition and content delivery platform to capitialise on the significant opportunity of the global social gaming media market," said Wellisch.
MSM however isn't the only international company to list on the ASX via a backdoor listing. For example, Vancouver-based Kabuni popped up on the ASX last September following a AU$7 million reverse takeover of Magnolia Resources, a mineral exploration company based in Perth. Kabuni previously said that the plan is to use its ASX listing to raise more funds before it can be listed on the Nasdaq.
Similarly, North American cloud-based education software provider LiveTiles performed a reverse takeover last April of Perth-based Modun Resources, a company which was previously involved in the acquisition, development, and mining of thermal and coking coal deposits in Mongolia.
Headquartered in New York, LiveTiles' ASX debut was a strategic business move. According to non-executive chairman Mike Hill, listing in Australia has set the company up to expand into its next stage of development.