Direct Listing is an innovative solution introduced by ANote Music allowing music rights holders to gradually list an additional percentage of their catalogues directly in the secondary market without the time pressure of an auction.
Direct listings’ take place after their catalogue has first listed an initial portion of the shares in a successful auction. In this phase, the price per share will be based on the already calculated value of the catalogue and demand and supply dynamics in the secondary market.
Existing shareholders will not be impacted by any “dilution” of their shares, as the newly listed shares correspond to an additional percentage of the catalogue’s royalty interests. To illustrate, let’s take the example of Dynoro - Lithuania HQ Catalogue: Lithuania HQ first listed 10% of the catalogue which corresponded to 10.000 shares. Later on, in the Direct Listing phase, Lithuania HQ listed 40.000 more shares totaling 50% of the catalogue. This means that a total of 50% of the royalty interests generated by the catalogue will be distributed among the 50.000 shares and its shareholders.
If you still have questions about the ‘Direct Listing’ on the platform, please contact us at support@anotemusic.com directly.