MSM Corporation International bags A$10.5 million; ropes in Usher

09:11 15 Aug 2017

Eight‐time Grammy Award winning superstar, Usher, has joined MSM.

MSM Corporation International bags A$10.5 million; ropes in Usher

Topbetta sees a huge potential in the under-developed U.S. market

MSM Corporation International (ASX:MSM) has successfully completed a capital raising of A$10.5 million via the issue of shares and convertible loans.

The company’s flagship product is Megastar Millionaire, a global app-based talent contest that promotes social media artists in a series of competitions conducted over multi-month time spans.

The app is now live in Great Britain, South Africa, New Zealand and Canada and is all set to launch in Australia and the U.S. soon.

Following the capital raise, MSM is in a position to continue its momentum and further build the success of the global competition.

MSM will allocate $1.89 million towards marketing and production plans for the first Megastar competition, including music licencing rights and optimising the platform infrastructure.

The company will allocate $5.7 million towards talent acquisition costs, payment to the judges and mentors for the competition, which will be made in staged payments linked with key milestones.

Interestingly, eight‐time Grammy Award winning superstar, Usher, has joined MSM as Megastar chief creative director.

Usher is one of the best‐selling artists in American music history and a household name across the globe.

MSM’s share price closed 9% higher on Monday, at A$0.024.

Usher joins local tech start-up

Reporter @swan_legend
HOUSTON, TX — FEBRUARY 05: Usher looks on prior to Super Bowl 51 between the New England Patriots and the Atlanta Falcons at NRG Stadium on February 5, 2017 in Houston, Texas. (Photo by Kevin C. Cox/Getty Images)

ASX-listed Sydney tech start-up MSM has landed eight-time Grammy winner Usher as its chief creative director, with the pop superstar set to also serve as headline judge, mentor and brand ambassador for the firm’s Megastar competition.

MSM managing director Dion Sullivan said Usher’s background having sold over 65 million albums worldwide and and mentored Justin Bieber – launching him to stardom – made him ideally suited as Megastar’s celebrity ambassador to guide contestants through the competition.

Megastar is an app-based talent competition worth one million US dollars and has already launched in the UK, South Africa, New Zealand and Canada with launches slated for the US and Australia this week.

Performers compete in any category, for a prize pool of one million US dollars, a role in a film produced by executive producer John Baldecchi, and a variety of cash prizes.

“Megastar is unlike any talent competition out there,” Usher said. “It spotlights the power of emerging global talent and turns seemingly unattainable dreams into reality. I’m thrilled to be a part of this creative, next generation online competition.”

Mr Sullivan said Usher’s engagement is for an initial term ending 60 days following the finale of the first Megastar competition in 2017, with the consideration payable to Usher comprised of staggered cash payments, performance rights and royalties.

“We are absolutely delighted to have Usher invested in both the product and the outcome of Megastar,” Mr Sullivan said. “His career spans over 24 years already and he has inspires so many artists.”

Usher is in the midst of controversy however, finding himself in the middle of a million dollar lawsuit after explosive court documents allege the singer gave an unnamed woman genital herpes in 2012.

According to court documents obtained by Radar Online, the singer, whose real name is Usher Raymond IV, shelled out $US1.1 million ($A1.38 million) for the celebrity stylist after he allegedly gave her the sexually transmitted disease.

MSM shareholders don’t seem to mind however with shares up about 10 per cent on the announcement.

MSM also announced it had raised $10.5m ahead of its global launch, with the funds going towards marketing, production and judges for the competition.

The raise was led by CPS Capital Group and Cadmon Advisory.