SHARE PUNT OF THE WEEK

WHAT IS IT?

EVR Holdings is an AIM-listed virtual reality (VR) company which is focused on distributing content via its subsidiary MelodyVR. Currently in testing mode, MelodyVR is an application which allows fans to watch gigs on VR headsets, and has already secured content from over 500 artists and musicians. Aside from recorded content, the app plans to begin live-streaming events in VR, which it rather ambitiously claims will ‘eliminate capacity restrictions for any concert or venue’.

WHAT’S THE LATEST?

After launching the test app in December, MelodyVR has signed key content creation and distribution agreements with mammoth labels Warner Music, Universal Music Group and Sony Music Entertainment. The firm also successfully raised £5m from investors in June, which it plans to invest in its original content library and use to develop its live music capture abilities in the UK and overseas.

WHO BACKS IT?

Shares soared recently after it was reported that pop music superstar Adele had pumped some of her multimillion pound fortune into EVR. According to the firm’s filings, its biggest investor is chief executive Anthony Matchett, who owns a 20.9pc stake. The boss, who is just 29 years old, has extensive experience as an audio engineer, and secured clients such as Microsoft, Sony, and Ubisoft during his time at recording studio Wave.

WHY YOU SHOULD INVEST?

Facebook and electronics corporation HTC have thrown their weight behind VR, and with a unique proposition, decent momentum and the backing of huge firms, MelodyVR looks well positioned to ride the VR wave.

…AND WHY YOU SHOULDN’T

With the MelodyVR app yet to fully launch, could this be another case of a stock which goes up and up before crashing when it fails to deliver the goods?