Volume rises in music listing impasse
Published:Friday | February 2, 2024 | 12:10 AMSteven Jackson - Senior Business Reporter
Parties in the stalled listing of United States (US)-based Music Licensing Inc have traded more statements ahead of pending litigation.
Music Licensing Inc’s legal representation in this matter is Davy Karkason Esq from Transnational Matters law firm ,and fully intends to pursue proper legal action.
“Additionally, we are exploring all potential lawful avenues, including, but not limited to, filing arbitration with the International Centre for Settlement of Investment Disputes, and pursuing potential legal action in federal court within the United States,” according to a statement from Music Licensing, in response to Financial Gleaner queries. “Music Licensing Inc is confident in the merits of our claims to be presented in the proper arbitral tribunal or court of law.”
Jake Noch is the CEO and chairman of Music Licensing. The company is worth some US$45 million, based mostly on its music catalogue, and it holds cash of US$2,400 at June 2023, according to the company’s filings.
The company intended to expand operations to Jamaica, particularly in developing the underserviced music publishing and music intellectual property sector. Those plans are now shelved with the January 30 notice sent to the US Securities and Exchange Commission that it intends to file suit in US federal court over a series of allegations related to effectively stalling the listing.
The parties that Music Licensing plans to take legal action against are the Jamaica Stock Exchange (JSE) and its managing director, Marlene Street Forrest; Cumax, its CEO Ian McNaughton and Chief Investment Officer Maurice Wright; businessman Earl Chapman, and attorneys Shaunna-Kay Carter and Novia Cotterell.
“The allegations are totally baseless and without merit, and any claim or proceeding that may be filed will be vigorously defended,” according to a joint statement on behalf of Shaunna-Kay Carter and Novia Cotterell sent to the Financial Gleaner.
“The JSE wishes to make clear that we intend to take all the necessary steps with the relevant agencies of the US government to investigate and take action in respect of the filing that has been made by MLI and the Securities and Exchange Commission,” according to the JSE in a statement.
Music Licensing’s shares trade under the ticker symbol SONG on the over-the-counter market in the United States. The company is a relatively small music rights firm with a big catalogue. The company, in 2023, wanted to cross-list as a means of entering the local publishing space by leveraging its listed capital to raise debt to fund acquisitions. The company chose Cumax as its lead broker and arranger.
Under the previously disclosed agreement, Cumax would have provided advisory services to the company for a period of nine months, with an option to extend the agreement by mutual consent.
McNaughton already told the Financial Gleaner on Tuesday that his lawyers would advise him on the next move.
“We are having our lawyers advise us. This makes no sense,” said McNaughton on Tuesday. “There was no acrimony. We have been doing our job.”