QUEENSRŸCHE's securities attorney, Marc LoPresti, spoke to The Seattle Times about the band's attempt to raise $2 million by selling stakes in what he calls a "new holding company for all things QUEENSRŸCHE" that will receive the revenues from its tours, merchandising, album sales and digital downloads.
For a minimum investment of $50,000, fans who pass an independent accreditation process can purchase an equity ownership stake from a private consolidated holding company that entitles them to "a fixed percentage" of future revenue.
"Traditionally, a band would not go into their personal pockets to [bankroll and controll a recording-and-touring effort]," LoPresti said. "They would go to Capitol Records" or the like, which would dictate the project and give them an advance but "also take a huge swipe of the money," he added. "By disintermediating the labels, we're leaving more money on the table both for the band and people who invest."
QUEENSRŸCHE's stock deal utilizes a provision of the 2013 JOBS Act that allows promoters to publicize a private stock placement, though only "accredited investors" are eligible to invest.
"If it's successful, which we expect it to be, we may do it again with other bands," LoPresti said.
An internal board of directors comprising drummer Scott Rockenfield, bassist Eddie Jackson and guitarist Michael Wilton and band counsel Thomas Osinski will oversee the corporation.
A PledgeMusic campaign, "Building The Empire", has been launched that will act as a pre-order campaign for QUEENSRŸCHE's next album, tentatively due in early 2015. Eddie Jackson, Todd LaTorre, Parker Lundgren, Scott Rockenfield and Michael Wilton are offering fans various unique experiences to bring them closer to the band than ever before. The band is offering everything from limited-edition vinyl and merchandise to the actual instruments played on the upcoming album and a chance to hang with the band in their hometown of Seattle.
A video clip announcing the PledgeMusic campaign can be seen below.
QUEENSRŸCHE's latest, self-titled album sold around 13,500 copies in the United States in its first week of release to land at position No. 23 on The Billboard 200 chart. The record arrived in stores on June 25, 2013 via Century Media Records.