MSM unveils plans for ‘TalentCoin’ cryptocurrency tokens and talent agency
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Talent quest host MSM Corp has raised the curtain on a move into cryptocurrency-style digital tokens and talent management – after emerging from a four-month ASX suspension.
MSM — which operates the Megastar online talent comp — today announced it would raise $4 million to $6.6 million through its US subsidiary followed by a potential second stage raising through the offering of “TalentCoin” cryptocurrency tokens.
MSM (ASX:MSM) said the tokens would fund enhancement of its Megastar platform and drive user engagement. The tokens could be traded for meetings with judges or mentors or to pay for promotions or masterclasses.
MSM will also found “Megastar Studios” as a talent agency – picking up potential talent through its competitions and generating an additional revenue stream.
The announcement didn’t help the stock’s struggling share price, though.
The shares hit 3.3c today — they’re lowest point since a reverse takeover of Minerals Corporation in January 2016 following a $7 million raising at 6c.
The shares were trading as high as 34c late last year — but fell amid disappointing revenue.
The initial Megastar competition completed in December brought in just $13,000 in cash receipts over the first nine months of the year.
MSM’s last quarterly reported $637,000 left in the bank. The company hopes to bolster this through investors from strategic media, entertainment and tech sectors in the US, China and UAE.
In the US, in order to hold a token sale without registering with the SEC, a company must be cleared as a registration A.
To do that, MSM is putting aside $1.32 million of its initial raise, as well as a further $2 million for platform enhancement, and $1.5 for ongoing US operations.