Warner Music likes the sound of EVR's MelodyVR

Shares in EVR Holdings PLC (LON:EVRH), a creator of virtual reality music content, soared after it announced a deal with major record company, Warner Music.

The Aim-listed firm’s subsidiary MelodyVR and Warner will work together to create and distribute virtual reality content featuring Warner Music artists.

EVR acquired MelodyVR in March of this year, gaining access to technologies, products and services that enable users to consume immersive virtual reality (VR) music experiences.

The technology has obviously piqued the interest of Warner, which is one of the three largest record companies in the world; its labels include Atlantic Records, perhaps best known for being the distributor of Stax Records soul legends such as Otis Redding and Aretha Franklin, and Parlophone Records, a label largely known for spoken word and comedy records until it signed The Beatles.

MelodyVR will receive the right to distribute both pre-recorded and live content created with Warner artists via its music platform for an exclusive period, followed by a period of joint-exploitation by both parties.

MelodyVR has developed a proprietary post-production work-flow that enables recorded material to be processed into MelodyVR 360 degree panoramic video content.

The company has its own distribution channel and mobile app, plus it distributes content through third-party channels.

There is also the prospect of Warner taking a stake in EVR, as it has been given the right to subscribe for 43.24mln EVR shares at 4.25p a pop.

,239,926 ordinary £0.01 shares in EVR Holdings PLC, exercisable until the 5th anniversary of today’s date, at an exercise price of 4.25p.

 Shares in EVR shot up by a quarter to 4.15p on news of the deal.

Anthony Matchett, chief executive of EVR Holdings, described the agreement as a “significant milestone” for MelodyVR.

“Warner Music represents a number of the world’s most recognised artists and over the coming years we are looking forward to creating even more content with their outstanding roster of talent,” Matchett said.

“We look forward to working even more closely with Warner Music moving forwards,” he added.

Story by ProactiveInvestors