HEAR IT FIRST WITH OUR DAILY NEWSLETTER



We don't spam. Learn more about our Privacy Policy

The company behind ailing talent quest Megastar Millionaire has today announced a $1.59 million placement from its Indian partner in a bid to get out of its 14th week of suspended trading.

The move comes after MSM Corporation’s (ASX:MSM) initial talent quests failed to generate significant revenue in the December half.

MSM reported $5000 in customer receipts for the last three months of 2018. It raised at least $15 million last year and had $1.4 million left at the end of December.

But that hasn’t slowed its plans to push the competition format in India. The new placement from the Riva Group is touted as a show of support by its soon-to-be partner.

Under the deal — executed back in December — MSM will provide its brand, format and platform while Riva will provide funding, operations, PR support and access to its Bollywood connections.

“I believe that MSM/Megastar’s plan to revolutionise the live talent show/search industries, especially in geographies such as India, China and Southeast Asia, is a natural evolution within the global Entertainment industries,” Riva chair Paul Roy said.

The two are finalising a deal to launch of Megastar India under an exclusivity period to April 30.

Today’s fund-raising comes after a placement of $1.72 million announced earlier this year, a $10.5 million raise in August and another $3.4 million in November.

Last month MSM said it was considering crowd-funding as a potential funding route — and appointed a US crowdfunding advisor to raise capital and establish an “ecosystem” for performers to monetise their work.