Virtual reality content creator EVR Holdings PLC (LON:EVRH) has teamed up with Ibiza Rocks, the famous hotel and entertainment group, as part of a new commercial initiative.
As part of the sponsorship and content production agreement, EVR will create and distribute a number of branded VR videos across its MelodyVR platform.
It will also produce physical and immersive installations which will be utilised across Ibiza Rocks’ various properties throughout Europe.
READ: MelodyVR could be the future of music gigs
The two parties will also push one another’s brand; MelodyVR will promote Ibiza Rocks to its app users as well as its social media followers, while Ibiza Rocks will actively promote and endorse the MelodyVR platform as part of its own promotional campaigns.
As is common for EVR’s deals, Ibiza Rocks has the chance to put some skin in the game having been granted the option to subscribe for 6mln new shares at 5.5p apiece over the next five years.
EVR said the “material contract” will make a contribution to this year’s revenues, leaving it on track to meet full-year market expectations.
“In addition to our core strategy of the monetisation and distribution of VR content to music fans globally via the MelodyVR platform, strategic partnerships, sponsorship agreements and branded content opportunities have the potential to increase revenue generation and drive MelodyVR brand awareness,” said executive chairman Anthony Matchett.
“This agreement with IRG represents an exciting opportunity to cross-promote two successful music brands and is a testament to the continued growth of virtual reality and the progress of our own MelodyVR platform since launch.”
Shares edged 1% higher to 5.3p in early deals on Monday.