Sacramento, Calif. - Digital Music Group, Inc., a company that acquires digital rights to recordings, encodes them digitally and distributes them to online music stores, on Thursday made its initial public offering of shares on the Nasdaq. The company priced 3.9 million shares at $9.75 per share, an offer worth about $38 million. Shares were down as much as 14% on Thursday, before regaining some ground to close at $9.25. Founded in 2005, Sacramento, Calif.-based Digital Music Group has acquired rights to tracks from artists such as Fats Domino and Herman's Hermits, and digitized them for sale on iTunes, Napster and other similar services. The company will use the proceeds to fund expansion and for general corporate purposes.
http://biz.yahoo.com/prnews/060201/sfw121.html?.v=9
http://tinyurl.com/cqj2c (Reuters)
http://www.digitalmusicgroupinc.com