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Reservoir completes SPAC transaction, now listed on Nasdaq
By Chris Cooke | Published on Friday 30 July 2021
Reservoir has completed its merger with the special purpose acquisition company Roth CH Acquisition II Co, which means the independent music firm is now a publicly listed company on the Nasdaq stock exchange in New York.
It announced yesterday: “Reservoir Media Inc today announced the closing of its previously announced business combination with Roth CH Acquisition II Co (ROCC), a publicly traded special purpose acquisition company formed by Roth Capital Partners and Craig-Hallum Capital Group. Reservoir also announced the closing of its previously announced common stock PIPE of $150 million. The business combination was approved by ROCC’s stockholders at a special meeting of stockholders held on 27 Jul 2021”.
The merger with ROCC was first announced back in April. Special purpose acquisition companies – aka SPACs or blank cheque companies – are businesses with no active operations that raise money via a stock exchange with a view to buying another company. Through that acquisition the acquired company gets something of a back door stock market listing.
Reservoir will continue to be led by its founder Golnar Khosrowshahi, who said yesterday: “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”.
“Over the last fourteen years”, she added, “the Reservoir team has excelled at enhancing the value of our copyrights and recordings, while building a diverse and high-quality catalogue and growing our roster. Our tremendous passion and skills have driven Reservoir to hold a regular top ten US market share as reported by Billboard”.
“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”.
Reservoir has been quite acquisitive itself over the years, of course, and has continued to grow through acquisition in recent times. Last month it bought indie label Tommy Boy and earlier this week it confirmed it had taken a minority stake in Outdustry, the music agency with expertise in emerging markets like China and India.
