Reservoir Media has gone public on the Nasdaq exchange.
Shares dipped from an opening valuation of $9.38 to close at $9.03 on the first day’s trading.
The independent music company finalised its business combination with Roth CH Acquisition II, a publicly traded special purpose acquisition company (SPAC) formed by Roth Capital Partners and Craig-Hallum Capital Group.
The business combination was approved by ROCC’s stockholders at a special meeting of stockholders this week.
Reservoir also announced the closing of its previously announced common stock PIPE (Private Investment in Public Equity) of $150 million.
Reservoir’s founder and CEO, Golnar Khosrowshahi, said: “We are so happy with the result of the stockholder meeting and to close the business combination today. This represents an important milestone for our company as we become the first US-based publicly traded independent music company and the first female founded and led publicly traded music company in the US.”
Khosrowshahi added: “Over the last 14 years, the Reservoir team has excelled at enhancing the value of our copyrights and recordings, while building a diverse and high-quality catalog and growing our roster. Our tremendous passion and skills have driven Reservoir to hold a regular Top 10 US market share. This entry into the public markets is a testament to the growth and bright future that lies ahead within the industry. As we focus on our growth, our listing on Nasdaq provides us the resources to execute on our penetration into emerging markets and continue rapidly with our strategic acquisitions. I look forward to our next chapter as a publicly traded company.”
Since announcing the business combination in April 2021, Reservoir has made a number of catalogue and copyright acquisitions to continue its growth trajectory. This included the acquisition of legendary independent hip-hop and electronic record label Tommy Boy Music, which comprises over 6,000 master recordings and numerous legacy catalogues.
Reservoir has also continued to emphasise its growth in emerging markets with the announcement of becoming a minority partner in Outdustry, the China-headquartered music rights and marketing services company.