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.