Business

SSL Ventures sells majority music catalogue to Treasure Music Island

BY KARENA BENNETT
Business reporter
bennettk@jamaicaobserver.com

Wednesday, September 05, 2018

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SSL Ventures has signed an agreement with Treasure Music Island Inc, granting the company a 75 per cent interest in future revenue streams of SSL Venture's legacy music catalogue.

The agreement, which took place on August 13, will see former CEO of C2W Music, Ivan Berry, and former Board Chairman Derek Wilkie owning the rights to control, administer, license, exploit and collect any proceeds generated from the catalogue.

Berry and Wilkie currently stand as principal shareholders of Treasure Music Island.

“As we said the venture capital business model is really our focus. It wasn't our intention to continue in the music industry, so this plays in with that mandate,” CEO of SSL Ventures Drew Gray told the Jamaica Observer.

In exchange for their management role, neither Berry nor Wilkie will be paid a salary but instead will be incentivised from successes of the operation.

SSL Ventures said it will retain 25 per cent of the net receipts from the catalogue in the form of royalties over the next five years. SSL Ventures also has the option to extend the term of agreement.

SSL Ventures' agreement with Treasure Music Island follows on the reverse takeover of loss-making music publisher C2W Music in July when two C2W Music Ltd (MUSIC) directors, transferred shares totalling 215,978,588 units to Stocks and Securities Ltd bringing SSL's total ownership to 320,000,000 units or 80 per cent of total issued shares.

SSL Venture Capital is already capitalised with US$850,000 but will go back to the market to raise additional funds in order to finance future deals, while C2W last reported negative equity of US$236,000.

“They do believe in the music catalogue, as far as sustainability goes we are not too concerned about its sustainability because that's not really our core focus. We will be sustainable by ourselves as we look to invest in key portfolios,” Gray told the Business Observer.

Already, SSL Ventures has identified three local companies for investment, but was tight-lipped on the details.

“We have a diverse set of companies lined up so far,” the CEO said.

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