(Hypebot) — Indie music’s Reservoir Media [NASDAQ: RSVR] stock is now trading publicly, something CEO Golnar Khosrowshahi is calling an “important milestone” for both the company and the entire industry.
Reservoir Media stock was down 9.10% trading at $7.19 in early trading Wednesday. The downturn came after Reservoir announced that it was investing in China’s Outdustry to build on successes in China and India. The companies also formed a joint venture to sign and develop Chinese artists and songwriters, plus acquire local music catalogs.
Guest post by Emmanuel Legrand of the Legrand Network
New York-based independent music company Reservoir Media has started trading on the NASDAQ Capital Market on July 29, following the closing of its previously announced business combination with publicly traded special purpose acquisition company (SPAC) Roth CH Acquisition II Co. formed by Roth Capital Partners and Craig-Hallum Capital Group.
The combined company is named “Reservoir Media, Inc” and trades the ticker symbol “RSVR” and “RSVRW”. Reservoir’s Founder and Chief Executive Officer, Golnar Khosrowshahi (pictured, below), and the current management team will continue to lead Reservoir. The introduction price valued the company at $788 million.
Both Khosrowshahi and President/COO Rell Lafargue have a seat on the board of RSVR. Ezra S. Field, a Senior Advisor at Roark Capital Group, is Chairman of Reservoir Media and Chairman of Roth CH Acquisition II Co.
A bright future ahead
Khosrowshahi said the trading of the company represented “an important milestone for our company as we become the first U.S.-based publicly traded independent music company and the first female founded and led publicly traded music company in the US.”
Reservoir was founded in 2007 in New York and now has offices in offices in Los Angeles, Nashville, London, Toronto, and Abu Dhabi. Through acquisitions and direct signings, Reservoir now owns a catalog of over 130,000 songs as well as master recordings.
Invest in entertainment
In a note to the industry, Reservoir said: “When Reservoir was founded in July 2007, we had three employees and a small office on Hudson Street in New York City’s downtown Soho neighborhood. Our ethos since day one was a commitment to three guiding principles – represent high-quality music, maintain a disciplined approach to our growth, and curate an enviable roster of songwriters and artists.”
It continued: “So much has transpired in the 14 years since, but those core values remain unchanged. Our team’s tremendous passion and skills have driven Reservoir to hold a regular Top 10 US market share as reported by Billboard. We have expanded at home and abroad, adding offices in Los Angeles, Nashville, London, Toronto, and Abu Dhabi; grown our recorded music operations to include iconic labels Chrysalis Records and Tommy Boy Records; and welcomed management partners Blue Raincoat Music and Big Life Management into the fold.”
The note concluded: “It is both exciting and humbling to take this next step in Reservoir’s journey, as we look forward to all the growth opportunities that this creates and deepen our commitment to investing in entertainment. We thank each of you–our staff, roster, partners, and friends–who made this all possible.