Nasdaq Today – Reservoir to List on NASDAQ With $788 Million Valuation
New York-based music-rights company Reservoir Holdings has announced that it will list on NASDAQ through a merger with the Roth CH Acquisition II Company.
According to the announcement, the transaction values the combined company at $788 million and is expected to provide approximately $246 million in gross proceeds to the company.
Upon closing of the transaction, the combined company will be renamed Reservoir Media, Inc. and is expected to remain listed on the NASDAQ under the new ticker symbol “RSVR.”
In connection with the merger announcement, the companies executed definitive agreements with institutional investors, including funds managed by Caledonia, for a common stock PIPE of $150 million at $10.00 per share.
Upon closing of the transaction, founder and CEO Golnar Khosrowshahi will continue to lead the combined company.
The announcement also states that Reservoir will be the first independent music company to go public in the United States, and also the first female founded and led music company to be publicly traded in the United States.
Founded in 2007, Reservoir’s music publishing catalog consists of more than 130,000 copyrights dating as far back as 1900. Its catalog includes evergreen compositions such as “It’s Your Thing” by The Isley Brothers, “Ring of Fire” by Johnny Cash, “Take Me Home, Country Roads” by John Denver, and “Señorita” by Shawn Mendes and Camila Cabello.
Roster signings include Ben Harper, Migos’ Offset and Takeoff, 2 Chainz, Danja, James Fauntleroy, and Ali Tamposi. Reservoir has invested and deployed over $100 million in its frontline creative signings.
Khosrowshahi commented, “From day one, our mission has always been to be the best independent music company in the industry. Today we have taken an important step forward in Reservoir’s evolution to fully realize that vision through our partnership with Roth CH II. I am immensely proud of what we have built alongside President & COO Rell Lafargue, and our incredible team whose excellent skills, high-touch client service, and outstanding track record is unmatched.”
Partners of Roth Capital and Craig-Hallum, sponsors of Roth CH II stated, “We are thrilled to be partnering with Reservoir and its exceptional leadership team. Reservoir has built an outstanding collection of hit songs and soundtracks in both its music publishing and masters businesses, and has a unique and differentiated value enhancement model that drives highly attractive returns.”