Jaxsta Ltd (ASX: JXT) operates as a music company. Jaxsta serves customers in the regions of Australia, The United States of America, and The United Kingdom.
The company, today, informed the exchange that it has entered into a commercial data access agreement (CDAA) with Warner Music Inc. (WMG) granting it a licence and authorisation to use WMG’s data worldwide. Jaxsta will compensate WMG through an ongoing royalty fees during the term of the CDAA.
WMG’s family of labels – including Atlantic Records Group, Warner Bros. Records Inc., and Parlophone – are among the most prominent and successful in the history of music, encompassing a global roster of acclaimed artists and an unparalleled catalogue including many of the world’s most famous and influential recordings
The CDAA will provide Jaxsta with the ability to gain access to relevant music data from WMG for ingestion to its platform (Jaxsta Platform). In addition to the WMG CDAA, Jaxsta has now entered into 28 licencing data agreements in the past 18 months including with The Recording Academy, Sony Music Entertainment and Universal Music Group
Jaxsta’s product schedule remains on track with the Jaxsta.com Beta site slated to launch in the first half of 2019, Jaxsta Pro subscription product scheduled for the first half of 2019 and the commercial API is planned for the last quarter of 2019.
The initial term of the CDAA is two years with automatic annual renewals of one year periods following the end of the term. Either party may terminate the CDAA with the provision of at least 90 days’ notice before the end of the relevant period.
In connection with the DPA, the Company has agreed to issue to WMG 1,351,146 warrants each to subscribe for one new ordinary share in Jaxsta. The warrants have an exercise price of $0.01 per warrant and are exercisable in multiple tranches for seven years subject to certain vesting conditions, with the first tranche of warrants vesting on the first anniversary of the date of the issue of the warrants. These unlisted warrants are issued within Jaxsta’s existing placement capacity under ASX Listing Rule 7.1.
The company today released its presentation to the investors. The company has an addressable market of over $200 million per annum for subscription alone and Jaxsta is the most comphrensive official music credits provider of its kind.
On the price-performance front, the stock has posted the YTD return of -2.70%. The stock also has delivered returns of -5.26%, and 28.57% over the past six, and one-month period respectively. At the time of writing (15 March 2019), the stock of the company is trading at a price of $0.22, up 22.22% during the day’s trade with a market capitalisation of ~$ 39.26 Mn. The stock opened the day at $ 0.175, reached the day’s high of $ 0.220 and touched the day’s low of $ 0.175, with an intraday volume of ~ 544,388. It had a 52-week high price of $ 0.220 and a 52 weeks low price of $ 0.008, with an average volume of, 74,018 approximately.
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