Armstrong Ventures to become virtual reality music company

Media, technology and healthcare investor Armstrong Ventures announced a plan to acquire virtual reality music experience company MelodyVR on Wednesday, for a total consideration of £5.12m.

The AIM-traded firm said the cost of the acquisition would be satisfied by the issue of 465,702,743 new ordinary shares at 1.1p each.

Armstrong’s plan would also involve the consolidation of existing shares, whereby every 100 shares would become one new ordinary share, and a change of name to EVR Holdings.

The focus of the newly reformed company would be to provide consumers, via a number of monetised distribution channels, audiovisual and interactive material intended for use with virtual reality devices.

"We are delighted to announce the proposed acquisition of MelodyVR, a business which is well positioned to benefit from the rapidly expanding VR sector,” said Armstrong chairman Sean Nicolson.

“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 $7.3bn of sales by 2025 with over 175 million users,” he explained.

Nicolson said MelodyVR’s proposition appeals to many music fans who have embraced the latest VR technology, offering an immersive music experience to fans unable to attend a live event due to financial or geographical constraints, age restrictions or concert sellouts.

He said it also gives music fans the opportunity to access recorded content.

"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,” Nicolson confirmed.

“We look forward to welcoming them to the board."

The proposed acquisition, share issue and consolidation and change of name are set to be put to shareholders at a meeting on 13 May.