Exciting news for all music lovers! Royalty Flow, a subsidiary of Royalty Exchange, now offers it’s shared, publicly, under Title IV of the 2012 JumpStart Our Business Start-up (JOBS) Act / Regulation A+. This is creating a new road for individuals to buy into music royalties.
Royalty Exchange connects private investors with rights holders and artists to raise money. Royalty Flow was created to hold onto music royalties of the world’s top music artists. Eminem’s recording catalog from 1999-2013 will be the first of the music royalties.
Jeff and Mark Bass – co-founders of “Funky Bass Team” (FBT) Productions, who first signed Eminem, and their manager Joel Martin are working with Royalty Exchange to allow both investors and fans this opportunity. Their first step was creating Royalty Flow, created to obtain music and other media royalties.
Shares of Royalty Flow are able to be bought from both institutional and individual investors. Along with this exciting news, they are now able to share in the once privately owned catalog it holds, through a sharing offer that is now filed. The company’s target is to raise $11-$25 million. This October is the expected date for the SEC to qualify the filing of the Royalty Flow’s Regulation A+. $2,250 for 150 share, which totals to $15 per share, is the expected minimum buy-in.
Royalty Flows also aims to allow anyone to buy and trade shares of a public stock exchange list. This makes them eligible to be collect dividends from other royalty assets as their added along with dividends from the Eminem royalties.
CEO Royalty Exchange and Royalty Flow Chairman, Matthew Smith said “Royalty Flow gives investors the opportunity to participate in assets that are uncorrelated with public markets, and directly benefit in the music industry’s growth. It also gives thousands of artists, producers, labels, songwriters, publishers, and other rights holders who contribute to the success of the superstars they work with access to on-demand financing options with the kind of flexibility seldom found in the music industry.”
The Bass brother and FBT own additional royalties and producer credits on Eminem’s 1999-2013 recordings and releases. Up to 25% of their Eminem sound record royalties will be available to investors through Royalty Flow. Eminem’s projects, contributions, recordings, and albums in this time frame will be available. This will include the full range of his albums including The Marshall Mathers LP and The Eminem Show.
With help from the Bass Brothers, Eminem is the second best-selling male artist of the last 25 years. He has more than 172 million albums sold throughout his career. Recently named the longest-charting hip-hop album in history is his album Curtain Call. The bass brothers and Martin successfully fought to raise royalty payments for digital downloads and streaming. This created a much higher rate for them to be paid than most producers and artists.
“We believe Royalty Exchange is the new model for music financing,” said Joel Martin. “We’ve supported increased transparency for artists our entire career, and Royalty Exchange is no different. They give investors simple, direct access to royalty opportunities that previously were available only to industry insiders. This changes everything.”