Adam Wellisch
Chairman, MSMCI


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A Note from the Chairman

Dear Shareholders,

The financial year 2017 has been one of significant milestones for MSM. The team have worked hard to complete the development of the Megastar platform and have successfully released the App in key geographic markets, starting with Great Britain, South Africa, New Zealand and Canada. Talent auditions have commenced and we have secured an incredible register of sponsored talent to represent and promote the competition. Given the calibre of talent that the Company has acquired we have executed at an extremely rapid pace.

The Megastar competition continues to be delivered by experts who are the best in their fields, helping to ensure its success on every level. During the year, we significantly strengthened our team with additional high calibre industry experts. Former X Factor executive, Marion Farrelly, joined as the competition’s Executive Producer, and eight-time Grammy award winning superstar, Usher signed on as its Chief Creative Director shortly after the end of the financial year.

These new additions are supported by the existing high profile members of our Board and Advisory Board, who have willingly contributed their time and expertise on pivotal decisions and projects throughout the year. Jennifer Herman has recently assumed an executive function in addition to her role on the Advisory Board to drive forward user adoption of the Megastar app, harnessing her Electronic Arts and Zynga experience.

We have also had great success in securing amazing talent to be the face of Megastar. Usher was appointed as Chief Creative Director, judge, mentor and brand ambassador, establishing a new level of industry credibility for the Megastar platform and the Company’s ethos. Usher is supported by competition hosts, SketcheShe and over 70 high profile Social Influencers and Sponsored Performers, representing an incredibly talented and global recognised entertainment team.

Through this list of globally appealing talent, our total audience reach has been built to an astonishing 130 million social media users. This audience reach is being leveraged for our multi-faceted marketing and media program, which includes social media, mass media and PR campaigns in our key target regions: the US, the UK and Australia. This program gives us a direct pathway to rapidly scale-up user participation in the competition via downloads, which will lead to monetization of the platform through in-App purchases, followed by advertising, sponsorships and eventually leveraging content and user data generated by the competition.

Throughout the year, we continued to work closely with our marketing, production and talent partners, such as Roar, DanceOn, FullScreen, Traction, ToneDen, Influential, Manifeste Marketing, Digital Riot Media and Boomopolis. Through these partnerships, we have been able to access top talent and significantly increase the calibre of the first Megastar competition, not to mention boosting its audience reach. These partnerships will become increasingly important as the competition progresses, with the activation of social media and marketing networks.

All this progress would not have been possible without the hard work and commitment from the whole MSM team in the US and Australia. I’d like to thank all of our hard working staff for their efforts thus far, as well as their ongoing commitment as we commence global auditions for the first Megastar competition.

Our shareholders have also played an equally important role in supporting the Company and helping us to achieve so many significant milestones. MSM successfully raised $4.88 million during the year, followed by more than $10 million post period. Through these Placements, we have expanded our shareholder register to welcome new and existing domestic and international shareholders, including two additional well regarded funds, to our shareholder base.

There is a lot to be achieved in the coming months by the MSM team. With global auditions about to commence, the team is squarely focused on successful execution of the first global Megastar competition. The results of our Beta testing and two statistically significant market research studies completed during the financial year give us great confidence that our target market will adopt and engage with Megastar. The team at Megastar is extremely excited for our first competition. Download the app, tell your friends and follow us on social media @megastarapp

Yours sincerely,

Adam Wellisch
Chairman