The Jaxsta Ltd (ASX: JXT) share price is picking up steam in late afternoon trade. This comes after the company announced that it has signed a publisher data deal. At the time of writing, the music technology company's shares are swapping hands for 8.6 cents apiece, up 1.18%.

What did Jaxsta announce?

The Jaxsta share price is racing higher towards the end of market close. Consequently, as investors fight to get a hold of its shares.

According to its release, Jaxsta advised that it has entered into a Commercial Data Access Agreement with Kobalt Music. The deal will run for a period of two years with an option to extend.

Under the terms of the contract, Kobalt Music will provide its publisher data. Thus, improving Jaxsta's official music credits data information. This is seen as a critical step by the company to launch its Works product on its Jaxsta Pro platform.

In addition, the deal will supplement another set of data available. This will be licenced through Jaxsta's Data Solutions and Commercial API. Currently, the company has two more paid deals which are scheduled to commence in April this year.

Furthermore, Jaxsta stated that the new agreement will be included in its revenue share for Data Solutions and Commercial API products.

Kobalt Music's publishing roster represents a number of famous musicians. In particular, Billie Eilish, Beck, Diplo, Elvis Presley, Foo Fighters, The Weeknd, and many others.

Management commentary

Jaxsta founder and CEO, Jacqui Louez Schoorl, touched on the company's prospects, saying:

Adding and marrying Publisher data with existing Record Label data to provide a deduplicated and deep-linked set of credits creates a unique world of new data integration possibilities for API data agreements with potential commercial partners. This deduplicated data is part of our Works product within Jaxsta Pro which we will be releasing in the coming months.

About the Jaxsta share price

The Jaxsta share price has performed modestly, gaining just above 13% since this time last year. Its shares hit a low of 1.3 cents in March 2020. Prior to accelerating in September, reaching a 52-week high of 18.2 cents.

Based on the current share price, Jaxsta has a market capitalisation of around $21 million.

The post Why the Jaxsta (ASX:JXT) share price is rising higher today appeared first on The Motley Fool Australia.

The Jaxsta Ltd (ASX: JXT) share price is latest market minnow to grab attention following the spectacular rise of the Brainchip Holdings Ltd (ASX: BRN) share price.

The Jaxsta share price rocketed by over 300% to 11 cents during lunch time trade after it announced a $1.9 million deal with Songtradr.

Under the five-year agreement, Songtradr will pay an upfront licence fee of $500,000 to Jaxsta. In return, Songtradr will have the opportunity to provide a revenue identification and collection service for Jaxsta Pro users.

Convertible note already in the money

The service identifies missing performer income from sound recordings ("Neighbouring Rights"), which should prove popular in this COVID-19 environment with many musicians out of work.

Songtradr will also invest $1.4 million in Jaxsta through a three-year convertible note. The investment is already paying off given that Songtradr can convert the debt to Jaxsta shares at 3.5 cents a pop.

Big dilution could impact on Jaxsta's shares

If Songtradr elected to convert the entire investment into shares, there will be an extra 40.6 million shares in Jaxsta. That's a big dilution as that represents around 16% of Jaxsta's current share base.

However, the cash from the investment will come in handy even though it attracts a 7.5% interest rate.

Also, Jaxsta's shareholders won't be complaining as its share price was wallowing at 2.6 cents before the deal was announced.

Still sounding sweet to investors

Additionally, the transaction gives Jaxsta a new income stream as it can collect 20% of net Neighbouring Rights revenues received by Songtradr from Jaxsta users adopting the service after recoupment of the license fee.

"We believe this new revenue-generating product will also drive increased adoption of Jaxsta Pro subscriptions," said Jacqui Louez Schoorl, CEO and Co-Founder of Jaxsta.

"This partnership with Songtradr highlights the significant opportunities that exist in solving the data-centric challenges faced by the music industry."

Striking a high note

Jaxsta believes the global Neighbouring Rights market is worth a around US$2.6 billion ($3.6 billion).

"​Ja​xsta has solved a significant piece of the music industry data dilemma and has built a scalable technology solution that integrates neatly into our music rights ecosystem and licensing marketplace," said Songtradr CEO Paul Wiltshire.

Songtradr claims to be the largest B2B music licensing marketplace in the world. It provides music creators with a rights management and monetisation solution so that they can get paid whenever an advertiser, or media/gaming company uses their music.

Despite the big surge in the JXT share price today, the stock is still down by around 15% since the start of calendar 2020.

The post Why the Jaxsta share price rocketed by over 300% today appeared first on The Motley Fool Australia.