GrooveMe aims to develop ‘Holographic shows’ created from iconic music concerts, musicians, artists and performers and aimed at a global marketplace.Working with Bob Geldof, GrooveMe have the rights to LIVE AID and created a world first at Abbey Road Studios recording 3D sound to holographic image in Studio One. They are now seeking to take the global music and karaoke market by storm and are led by a veteran of multiple stock market listings.
GrooveMe aims to develop ‘Holographic shows’ created from iconic Music concerts, musicians, artists and performers and aimed at a global marketplace.
The GrooveME technology allows for extraction of images from historic film archive material as well as new recordings and original holographic creations. To demonstrate this can be done we’ve extracted ‘Elvis’ and others from film footage as shown in part of the video presentation and features in our demonstration units at the Studio. These can be combined with our unique 3D ZoneME™ sound system for a fully immersive music fan experience.
We seek to position GrooveMe as a ‘must see’ part of music festivals, as well as an on-demand feature at karaoke clubs, permanent installations at historic music venues, hotels, cinemas and casinos, pop-up booths at weddings, parties and corporate events and will invite many more opportunities. The system allows fully scaleable holograms from ‘in the palm of your hand’ to life-size performances without the need for cumbersome glasses.
We have created music history by making the first 3D Sound to Holographic image recording at Abbey Road Studios” with Bob Geldof’s Boomtown Rats and Ray Laidlaw + Billy Mitchell of The Lindisfarne Story. Knebworth House, the iconic venue having hosted acts from Led Zeppelin to Robbie Williams, have agreed to site an installation in their grounds and we plan to engage with a major music attraction in Nashville USA and are confident that there will be great interest from artists there to record holographic performances.
Our first recording was Marc Almond performing the classic hit ‘Tainted Love’ and we have a pipeline of artists both past and present in discussion. Most importantly, the rights to Live Aid and Live 8 are secured allowing us to extract a number of dynamic artists initially including Freddie Mercury’s iconic performance voted the best of all time by the British music industry.
Marketing and communications will be designed to create excitement in the GrooveME Brand and also be focused around artists as we sign them, aimed at their own fans to capture their attention and imagination. This should also allow us to create an extensive user database allowing highly-targeted future campaigns and also a greater following and relationship with the Music and Entertainment media.
The overall global music market is huge. Music festivals are now a year round scene, so in our plans and forecasts we have only shown that we will capture a very small proportion of the market in a few countries. To show GrooveME capturing a bigger percentage would have made the turnover look so large as to appear unrealistic. We are breaking in to a market and believe we are bringing a new area of entertainment to complement the experience of Festivals, Gigs, Karaoke etc. We believe we are therefore creating a new entertainment space where we are yet to find any business competition. The Directors believe that once further funding is achieved in our 2nd round in early 2016, the actual sales and profit figures will greatly out-perform our conservative projections.
Some statistics here should demonstrate this:
There are over 800 music festivals annually across Europe. The majority being either Rock or Indie music led. We know from the European Festivals Research carried out last year that 35% of all festival attendees spent more than €150 on food and merchandise while at the event and 50% spending between €50 and €150. The average spend at a festival in 2014 was €119.40 per person.
39% of festival fans also travelled outside of their own countries last year to attend other festivals, as a fun holiday. The average festival-goer attends 9 Gigs a year and 2.5 festivals.
The Karaoke Market is one area of activity where we know that Holographic style interaction would be an innovative and attractive development. We know that there are over 140,000 Licensed Karaoke clubs with multiple rooms and that is just in Japan. This is a market worth over 600 billion yen ($5.8 billion) and over 50 million people in Japan sing with karaoke machines annually across the 390,000 karaoke machines that are in Japan. there is also Vietnam, Singapore, Korea and of course the massive Chinese market.
We can only guess at how many people would love to see or singalong with Freddie Mercury in this way – but the number would be a big one!
Our plan recognises that we will have to franchise the GrooveMe product to capture the potential of overseas territories. What it does not recognise is the income from Master country franchise fees or income other than our two selected test territories.
Alex Worrall FCCA – Chairman
Massive music fan and serial entrepreneur having launched 3 companies on the London Stock Market, Alex is also a former Chairman of Thyssen Krupp and is currently Chairman of Black Hangar Studios in Hampshire (which have been used to film Salmon Fishing in the Yemen, Top Gear and 24 amongst others). Alex has been a senior industrial director or chairman for over 30 years which include him overseeing his own company’s growth from £1m to £160m.
Jake Seal – Chief Executive Officer & Director of Holography
A Visual FX and Stereoscopic imaging expert who currently owns 3 film studios with Production, Post Production and Visual FX facilities. We are confident that Jake’s work in 3D imaging will be of great value to GrooveMe which has included work with the media company Turner and the research institute CERN.
Andrew Eborn – Chief Operating Officer, Licensing & Intellectual Property
Andrew’s area of expertise in International licensing and Global rights management was honed by his time as a Barrister. He is also CEO of Octopus TV, a digital media content management and delivery company.
Edwin Philpott FRSA – Director Marketing Communications
As a former Creative Director at Saatchi & Saatchi, Edwin has produced award winning strategies for both creativity and effectiveness across National, International and Global clients, as well as creating an integrated approach to the agency business – a strategy that is used across the industry today.
Allan Wilson M.Mus LRAM LGSM – Director of Auralography
Conductor for The Philharmonia and London Philharmonic Orchestras, Head of Film and New Media music for the Slovak Symphony Orchestra in Bratislava. Allan works with leading composers and recording studios including Abbey Road and Air Studios in London.
Robert Morrish FCA – Financial Director
Highly experienced in International Franchise and E-Commerce operations including being a Non-Executive Director of Domino Pizza Poland helping to raise £5m to launch and a further £10.5m development funds
And not to forget – we’re all huge music fans of course!
SALES:
Key sales drivers: Be able to digitally stream as much of the content as possible using all available bandwidth to achieve a level of quality, cost, design, delivery and management (QCDDM) that would be difficult to replicate by any competition coming into our arena.
USE OF FUNDS:
Additional digital equipment for demonstration units, Completion of IPR protection, Additional working Capital
More recordings of live sessions to develop the catalogue, Initial Sales & Marketing communications
EXPENSES AND PROFITABILITY:
2015-6 is a part year but at both net and EBITDA level GrooveME should still be able to record a small profit.In the first full year of operation EBITDA is forecast to rise to approximately £1m and then double to £2m the following year.
EXISTING DEBT OR EQUITY INVESTMENTS:
Debt: There is no Directors’ debt within the company. The years of development costs have been written off and reflected in the share structure.
Equity: £217,598 to date
CASH:
The current cash burn is approximately £5k per month.
The next finance-raising round (£3.85mn raise) is projected in approximately 12 months’ time
We see many potential ways investors have to exit their investment after they have met qualifying conditions for EIS.
From the company’s viewpoint we believe that once we establish the continued viability of the growing business model and profit starts to flow through then a number of the media groups would undoubtedly show interest in our activities. These obviously include the large music download sites and the large multinational companies who control music rights.
The Directors though believe that the potential of GrooveME is such that an early exit may deny investors the chance to see the full benefit of the investment potential.
It is planned that GrooveME will raise an additional £3.85m net of costs either by way of private placement or AIM floatation during 2016. It is planned that this funding will be raised at a multiple premium to the funding currently being raised in this round. This further funding raise will be used to exploit the many varied opportunities that we envisage being associated with GrooveME sound and vision experiences that are not currently included within the forecast in our financial plan.
We see that these opportunities could include but are not limited to:
Brand association and sponsorship that we foresee are not included in our current financial plan.
If the company decides upon a flotation then such a move would allow investors to determine the time and pace that they exit (if they so wish) from the company. If the company opts for a private placement then again subject to EIS regulations we would seek to allow investors the opportunity to exit their investment.
Prior to a private placement or flotation but after a full years financial results, it is proposed that the directors introduce a share option scheme for its directors, staff and ambassadors. This will be profit performance related and will trigger if profit performance is 20% over and above budget level. The price for this share option scheme will be determined after consultation with HMRC and the issue will not exceed 10% of the shares on issue. The directors believe that this will further incentive its stakeholders to achieve both profit and share value growth. If implemented this will dilute all shareholders by the amount of the pool.
Our eternal gratitude for supporting us. We’ll keep you up to date with all the exciting things happening at GrooveMe in our quarterly investor email.
Priority booking privileges to purchase tickets and attend exclusive Groove me events and functions
Gold – level priority on bookings and tickets to attend a GrooveME recording, filming or premiere performance.
Platinum-level priority membership numbers and have absolute priority on all GrooveME events. Your benefits could be transferrable on an event-by-event basis.
Platinum-level priority membership. Plus you can come along to one of our recording sessions at the iconic Abbey Road studios for free and meet some of the artists we have the pleasure to work with.
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